After more than five years of litigation, Levi & Korsinsky and co-counsel brought to trial before the Delaware Court of Chancery the class action litigation Chen v. Howard-Anderson, et al. (C.A. No. 5878-VCL), and, on April 14, 2016, obtained a $35 million settlement.
The suit began in October 2010 on behalf of the stockholders of Occam Networks, Inc., alleging that the Company was being sold to Calix, Inc. in breach of insiders’ fiduciary duties pursuant to an unfair process and for an unfair price, which at the time of the merger agreement amounted to approximately $171 million. Prior to the February 2011 close of the deal, we obtained a preliminary injunction due to material misrepresentations and omissions in the proxy statement by which Occam’s stockholders were solicited to vote, requiring the issuance of corrective disclosures. We then continued to vigorously prosecute this litigation in a dedicated effort to recover money damages for Occam’s former stockholders.
We conducted an aggressive discovery program and largely prevailed in motion practice, enabling us to bring this case to trial on a strong record. On April 11, 2016, trial began, and after three days of testimony, we successfully resolved the case in its entirety. Pursuant to the proposed settlement, which is pending Court approval, $35 million cash will be paid on behalf of defendants for the benefit of Occam’s former stockholders.