Sun Microsystems Inc. Shareholder Lawsuit over Takeover - 04/22/2009

If you currently hold Sun Microsystems, Inc. (NASDAQ: JAVA) shares and purchased Sun Microsystems, Inc. shares before the takeover announcement you have certain options and you should contact the Shareholders Foundation, Inc. immediately!

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): 
Sun Microsystems
Case Name: 
Sun Microsystems Inc. Shareholder Lawsuit over Takeover - 04/22/2009
Case Status: 
Lawsuit Filed
Affected Securities
NASDAQ: JAVA
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
04/20/2009
Court of Filing: 
Superior Court of California
Summary: 

On Monday, April 20, 2009 an investor in Sun Microsystems (NASDAQ: JAVA) has filed a proposed class action lawsuit on behalf of current investors of Sun Microsystems (NASDAQ: JAVA), who purchased their shares before Monday, April 20, 2009 and continue to hold their shares, in the Superior Court of California against Sun and its board of directors over the announced takeover of Sun by Oracle Corporation for $9.50 per JAVA share in cash.

According to the complaint the plaintiff alleges that Sun Microsystems and its board of directors breached their fiduciary duty when they attempt to sell Sun to Oracle under the present conditions. The stock of Sun Microsystems (NASDAQ: JAVA) was trading as high as $10.86 on August 15, 2008 and $16.32 on May 01, 2008. The transaction was announced on the same day and is valued at approximately $7.4 billion, or $5.6 billion net of Sun’s cash and debt. The Board of Directors of Sun Microsystems has unanimously approved the transaction. According to a poll by the Shareholders Foundation, Inc., an investor advocacy group that does research to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock market, the majority of the participants (22%) think a price of $13-16 per Java share would be fair to Sun Microsystems investors in case of a takeover, 7% favor a price between $4-$8, 18% favor a price between $9-$12, 14% favor a price between $17-$20, 15% favor a price between $20-$24, 7% favor a price between $25-28, and 18% think the price should be over $28. Prior to the announcement of the proposed takeover of Sun by Oracle rumors said that Sun was in talk with IBM, but those talked ended without a result. Sun Microsystems had total revenue of $13.88Billion last year with a net income of 403Million. Sun Microsystems, Inc. is located in Santa Clara, California and provides network computing infrastructure solutions. Sun offers core brands, such as the Java technology platform, the Solaris Operating System, the MySQL database management system, Sun StorageTek storage solutions and the UltraSPARC processor. Shares of Sun Microsystems (NASDAQ: JAVA) traded on Friday at $6.68 per shares after they declined from the rumor talks with IBM on March 18, 2009 with a share price of almost $9 per share. Since the announcement of the acquisition Sun is trading at $9.16 per share, still substantially down from last year with $17.48 per share and over $25 in 2007. Sun Microsystems shares reached a price as high as $257.25 in 2000.