12/23/2008 10:39 AM
Just hours after Harmonic Inc. and Scopus Video Networks Ltd. announced their plan
for Harmonic to Acquire Scopus, lawyers representing investors moved to stop the deal.
The New York-based firm Levi & Korsinsky said it is investigating breaches of fiduciary duty and other violations of state law by the board of directors of Scopus.
Under the terms of the deal, shareholders of Scopus will receive $5.62 cash for each share of Scopus they own, for a total value of $51 million. Levi & Korsinsky said the transaction is unfair, given that, among other things, on Nov.10, Scopus announced record results for the third quarter 2008 of $19.9 million—a 31 percent increase from the $15.2 million reported in the third quarter of 2007.
Also, said the lawyers, Harmonic has already received voting agreements in favor of the proposed transaction of approximately half of Scopus’ outstanding shares thereby rendering the proposed transaction a fait accompli.
The deal is dependent on the approval of regulators.