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Print Edition StoriesMonday, November 30, 2009
Starent, Cisco sign agreement to settle stockholder suit
By Mass High Tech staff
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Starent Network Corp. has said that it signed a memorandum of understanding to settle one of the class action lawsuits seeking to block Starent’s acquisition by Cisco Systems Inc.
The suit was filed in the Chancery Court of Delaware days after Cisco and Starent announced the $2.9 billion acquisition — at $35 per share in cash — in which Starent would become Cisco’s Mobile Internet Technology Group.
Tewksbury-based Starent, which provides infrastructure hardware and software products and services to mobile operators, said it entered into agreement with attorneys for the plaintiffs in the Delaware case. The suit was filed by Laborers Local 235 Benefit Funds. Starent said that if the court accepts the settlement, the case will be dismissed.
Two other suits seeking to block the merger are unaffected by the settlement. In one case filed in Suffolk Superior Court on November 6, an Illinois stockholder, Steve Mifflin, is seeking class action status for other Starent stockholders and asks the court to stop any further action on the merger because the deal deprives Starent stockholders of “the opportunity for substantial gains which the company may realize.”
After the Cisco deal was announced, Starent announced that it had settled its legal disputes with telecom equipment and cell phone maker UTStarcom Inc. Starent has agreed to pay UTStarcom $3.5 million and will receive a perpetual royalty-free license to UTStarcom patents that had been the source of the legal conflict.
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