Entropic Communications, Inc. (NASDAQ:ENTR) Investor Files Lawsuit Over Alleged Wrongdoing In Acquisition By MaxLinear, Inc

If you purchased shares of Entropic Communications, Inc. (NASDAQ: ENTR) prior to February 3, 2015, and currently hold any of those NASDAQ: ENTR shares, you have certain options and you should contact the Shareholders Foundation, Inc.

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Company Name(s): 
Entropic Communications
Case Name: 
Entropic Communications Deal Case 02/10/2015
Case Status: 
Lawsuit Filed
Affected Securities
Lawsuit Overview
Type of Lawsuit: 
Mergers and Acquisition
Date Filed: 

February 12, 2015 (Shareholders Foundation) - An investor, who currently holds shares of Entropic Communications, Inc. (NASDAQ:ENTR), filed a lawsuit in effort to stop the proposed takeover of Entropic Communications, Inc. by MaxLinear for a value of approximately $3.01 per share.

The plaintiff alleges that the defendants breached their fiduciary duties owed to NASDAQ:ENTR stockholders by agreeing to sell Entropic Communications, Inc. too cheaply via an unfair process to MaxLinear, Inc.

On February 3, 2015 MaxLinear, Inc. (NYSE:MXL) and Entropic Communications, Inc. (NASDAQ:ENTR) announced that they have signed an agreement for MaxLinear, Inc to acquire Entropic Communications, Inc. Under the terms of the proposed transaction Entropic Communications, Inc. (NASDAQ:ENTR) shareholders will receive $1.20 per share in cash and 0.2200 shares of MaxLinear, Inc. (NYSE:MXL) common stock for each Entropic Communications, Inc. (NASDAQ:ENTR) common share outstanding. Based on MaxLinear's closing stock price on February 2, 2015, the merger consideration is valued at approximately $3.01 per Entropic Communications, Inc. (NASDAQ ENTR) share.

However, the plaintiff claims that the proposed consideration NASDAQ:ENTR shareholders will receive is grossly inadequate and undervalues Entropic Communications, Inc. Indeed, at least one analyst has set the high target price for NASDAQ:ENTR shares at $5.00 per share and NASDAQ:ENTR shares traded in early 2014 as high as $4.74 per share. In addition, the plaintiff claims that the process is also unfair to NASDAQ:ENTR stockholders.