BB&K In The News

BB&K attorney Patrick Monroe shares his thoughts on shareholder lawsuits with the San Diego Business Journal

When San Diego-based Peregrine Semiconductor Corp. announced its decision to sell the company for a 63 percent premium above its market value, at least eight law firms announced investigations into the chip maker’s business the same day, alleging its shareholders were getting short-changed on the offer price.

Those eight “first responders” were followed by at least 10 more announcements of investigations in the next few days from law firms that said the $12.50 per share offer from Japan’s Murata Manufacturing Co. was too low.

One firm, Tripp Levy PLLC of New York, said its investigation concerned whether Peregrine’s board breached its fiduciary duties by failing to shop the company to other possible buyers, or whether there were possible conflicts of interest on the part of senior management or directors. Murata makes up about 70 percent of Peregrine’s revenue, and is a minority shareholder.

A call to Tripp Levy seeking additional details wasn’t returned, nor were calls to several other national law firms looking for shareholder redress on the proposed sale.

Patrick Monroe, a corporate attorney at Best Best & Krieger in San Diego, said the many law firms investigations are all geared to finding willing shareholders to join their cause.

“Essentially what all these law firms are doing is competing to get the most shareholders,” Monroe said. If they achieve that, they can be certified as the class counsel for the shareholders, and stand to gain a big cut of any monetary settlement that’s negotiated, he said.
 

Click here to read the entire article published on Sept. 19, 2014 in the San Diego Business Journal (subscription required).