Starent Networks Corp. Investor Files Lawsuit

If you are currently an investor in shares of Starent Networks, Corp. (NasdaqGS: STAR), and purchased the shares before October 13, 2009, you have certain options and you should contact the Shareholders Foundation.

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Company Name(s): 
Starent Networks
Case Name: 
Starent Networks Deal Case 10/22/2009
Case Status: 
Lawsuit Filed
Affected Securities
NASDAQ: STAR
Lawsuit Overview
Type of Lawsuit: 
Mergers and Acquisition
Date Filed: 
10/22/2009
Class Period End: 
10/13/2009
Deadline To File for Lead: 
12/21/2009
Summary: 

An investor has filed a lawsuit on behalf of current investors Starent Networks Corp. (Public, NASDAQ:STAR), who purchased the shares before October 13, 2009, over alleged breaches of fiduciary duty in connection with an alleged unfair takeover price.

According to the complaint the plaintiff alleges breaches of fiduciary duty by the Board of Directors of Starent Networks Corp. (Public, NASDAQ:STAR) arising out of their attempt to sell Starent Networks, Corp. (STAR) to Cisco.

On October 13, 2009, Starent Networks (NASDAQ: STAR) and Cisco (NASDAQ: CSCO) announced a definitive agreement for Cisco to acquire Starent Networks. Under the terms of the proposed agreement, Cisco will pay $35 per share in cash in exchange for each share of Starent Networks and assume outstanding equity awards for an aggregate purchase price of approximately $2.9 billion. According to Starent Networks the acquisition has been approved by the boards of directors of both companies. According to a previous investigation by a law firm “the transaction appears to be unfair” to current investors of Starent Networks Corp. (Public, NASDAQ:STAR) because the “offer to purchase Starent Networks, Corp at $35 per share appears opportunistically timed to take advantage of the current economic downturn”.

The investigation “concerns whether the Starent Board of Directors breached their fiduciary duties to Starent shareholders by agreeing to sell the Company at an unfair price thereby harming Starent shareholders”, “whether the directors of STAR may have breached their fiduciary duties by not acting in STAR shareholders' best interests in connection with the sale process of STAR”, and “the Company may not have adequately shopped itself around before entering into this transaction and, pursuant to this proposed transaction, Cisco may be underpaying for Starent Networks, thus unlawfully harming STAR shareholders”.