Friday, November 25, 2005
© Copyright 2014
Gwinnett Daily Post
LAWRENCEVILLE - Lawrenceville-based Scientific-Atlanta Inc. and its directors are named in a lawsuit related to the company's pending takeover by Cisco Systems Inc.
Scientific Atlanta, a set-top cable-box maker whose Sugarloaf Parkway headquarters employ more than 1,000 workers, said on Wednesday it received two class-action lawsuits related to the $6.9 million Cisco deal.
San Jose, Calif.-based Cisco is acquiring Scientific-Atlanta for $43 per share in cash. The companies announced the acquisition Nov. 18.
The lawsuits center on that deal. In a statement, Scientific-Atlanta said the complaints allege the company's directors and officers "breached fiduciary duties," or failed in their responsibilities to protect shareholder investment.
Scientific-Atlanta said it "believes that the complaints are without merit and intends to defend the actions vigorously."
"The board of directors of Scientific-Atlanta engaged in a thorough and deliberative process to obtain the best transaction at the highest price available for its shareholders," the company said.
Scientific-Atlanta will file a preliminary proxy statement with the SEC to explain the process its board of directors went through to carry out the Cisco deal.
Scientific-Atlanta is one of Gwinnett's signature companies regarded as a pioneer of the state's high-tech sector. It employs nearly 7,650 workers, with about 20 percent housed in Gwinnett.