Atheros Communications, Inc. Board Under Investor Investigation Over Acquisition Proposal by Qualcomm Inc

If you purchased shares of Atheros Communications, Inc. (NASDAQ:ATHR) prior to the announcement and currently hold those ATHR shares, you have certain options and you should contact the Shareholders Foundation, Inc.

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Company Name(s): 
Atheros Communications
Affected Securities: 

Atheros Communications, Inc. announced its board members agreed to a buyout of Atheros Communications by Qualcomm Incorporated investigations on behalf of investors in Atheros Communications, Inc. (NASDAQ:ATHR) questioning whether the offer and the sale process are unfair to ATHR investors were announced.

The investigations law firms concern whether certain officers and directors at Atheros Communications, Inc. or any insider breached their fiduciary duty owed to the shareholders of Atheros Communications, Inc. (NASDAQ:ATHR) arising out of the attempt to sell Atheros Communications, Inc. to Qualcomm Incorporated.

The New York Times said already on Monday that Qualcomm Inc. is close to buying Santa Clara, California based Atheros Communications and ATHR Shares increased prior to the official announcement from $37.16 per share to $44.53 per share and closed Tuesday’s trading $44 per share. Then on Tuesday, Jan. 5, 2011, Atheros Communications, Inc. (Nasdaq: ATHR) and Qualcomm Incorporated (Nasdaq: QCOM) announced that they have entered into an agreement whereby Qualcomm Inc. intends to acquire Atheros Communications, Inc for $45 per ATHR share in cash, representing an enterprise value of $3.1 billion. ATHR shares increased on Wednesday to $44.65 per share after the buyout announcement was made public.

The investigation concerns whether Atheros Communications, Inc. , certain of its officers and directors breached their fiduciary duties owed to Atheros Communications, Inc. (NASDAQ:ATHR) investors by rushing into the transaction and failing to undertake an adequate and fair sales process to obtain fair consideration for all shareholders of Atheros Communications, Inc. (NASDAQ:ATHR), specifically by entering into any transaction before adequately shop the Company. Additionally Atheros Communications has performed exceptionally well for its shareholders. Despite the financial crisis Atheros Communications’ 12months Total Revenue increased over the past four years by almost 80%. Atheros Communications Total Revenue went from $301.69million in 2006 to $542.47million in 2009. Its Net Income over the same time frame increased by almost 150%. Its Net Income increased from $18.68million in 2006 to $46.41million in 2009. For the first three quarters in 2010 Atheros Communications reported a combined 9months Total Revenue of $700.02million succeeding its 2009 12 months Revenue already with a 9months Total Revenue by almost 30%. Atheros Communications reported a combined 9months Net Income for the first three quarters in 2010 of $77.59million succeeding its 2009 12 months Net Income already with a 9months Net Income by almost 70%. Further ATHR shares traded as early as April at over $42 per share leaving ATHR investors with only a meager premium. Thus a potential class action lawsuit would seek to maximize the amount of money and information ATHR shareholders would receive in a buyout, so a law firm.