Brocade Communications Violated Securities Law, Suit Claims

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A proposed class action has been filed against Brocade Communications Systems, Inc. and others alleging violations of the Securities Exchange Act of 1934. The 16-page complaint says its claims stem from an announcement made on Nov. 2, 2016 in which Brocade stated it would be acquired by Broadcom Limited, Broadcom Corporation and Bobcat Merger, Sub, Inc. Approximately a month later, Brocade filed a preliminary proxy statement with the U.S. Securities and Exchange Commission in connection with this proposed merger, but allegedly omitted “material information” that rendered that statement “false and misleading.” The suit seeks to stop the proposed merger until the missing material information is disclosed and is asking for compensation for those who own stock in Brocade.