Blue Coat Systems, Inc. Investor Files Lawsuit Against Directors Alleged Breach of Fiduciary Duty In Connection With Takeover

If you purchased shares of Blue Coat Systems, Inc. (NASDAQ: BCSI) and purchased your NASDAQ:BCSI shares prior to the announcement and currently hold those NASDAQ: BCSI shares, you have certain options and you should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this case, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
Blue Coat Systems
Case Name: 
Blue Coat Systems Deal Case 12/13/2011
Case Status: 
Lawsuit Filed
Affected Securities
NASDAQ: BCSI
Lawsuit Overview
Type of Lawsuit: 
Mergers and Acquisition
Date Filed: 
12/13/2011
Summary: 

San Diego, Dec. 9, 2011 (Shareholders Foundation) -- An investor in NASDAQ:BCSI shares filed a lawsuit in State Court in effort to stop the proposed acquisition of Blue Coat Systems, Inc by an investor group led by Thoma Bravo LLC for $25.81 per share.

According to the complaint the plaintiff alleges that the defendants breached their fiduciary duties owed Blue Coat Systems, Inc. (NASDAQ:BCSI) investors arising out of the attempt to sell Blue Coat Systems at an unfair price via an unfair process..

On Friday, December 9, 2011, Blue Coat Systems, Inc. (Nasdaq: BCSI) announced that it has entered into an agreement to be acquired by an investor group led by private equity investment firm Thoma Bravo, LLC, in a transaction valued at approximately $1.3 billion. Under the terms of the proposed transaction, Blue Coat Systems, Inc shareholders will receive $25.81 in cash for each share of Blue Coat common stock they hold. Blue Coat Systems, Inc said the offer represents a premium of approximately 48% over Blue Coat’s closing price on December 8, 2011 and a premium of approximately 62% over the 60-day trailing average for the period ended December 8, 2011.

Following the announcement NASDAQ:BCSI shares jumped from $17.48 per share to $25.17 on December 9, 2011

However, the plaintiff alleges that the $25.81 offer undervalues the Web security company. In fact, BCSI stocks traded as high as $28.80 on April 29th, as high as $31.07 on Feb. 11th, and slightly over $32 in January 2011, thus well above the current offer. Additionally at least one analyst has set the high target price at $28 per share.

Furthermore, Blue Coat Systems’ 12months Revenue increased from $305.44million for a 12months period ending on April 30, 2008 to $487.11million for a 12months period ending on April 30, 2011.