2009-11-23 19:20:17 - Lawsuit on behalf of investors in 3Com Corporation (Public, NASDAQ:COMS) against the board of directors of 3Com Corp. over alleged breaches of fiduciary duty – Contact the Shareholders Foundation

An investor in 3Com Corporation shares (COMS) filed a lawsuit in Delaware court on behalf of investors in 3Com Corporation (Public, NASDAQ:COMS) claiming 3Com is undervaluing itself.

If you purchased 3Com Corporation (Public, NASDAQ:COMS) before the announcement and currently still hold the COMS shares, you have certain options and you should contact the Shareholders Foundation, Inc at email: mail(at)shareholdersfoundation.com or at: +1 (858) 779 - 1554.

According to the complaint the plaintiff alleges that 3Com Corp.'s directors sold the company for too little when they agreed to Hewlett-Packard Co's $2.7 billion offer. In the filing, the plaintiff claims 3Com Corp breached its fiduciary duties to its shareholders by accepting the $2.7 billion offer, which values 3Com stock at $7.90 per share.

The complaint names the entire 3Com board of directors as defendants and alleges that they are "attempting to deceive 3Com shareholders and unfairly deprive them of the true value of their investment in the company". A previous investigation by a law firm concerned “whether the 3Com Board of Directors have breached their fiduciary duties to stockholders by failing to adequately shop the Company before entering into this transaction and whether HP is underpaying for 3Com shares, thus unlawfully harming 3Com stockholders.” Another investigation even called the deal “suspicious because it appears from a review of the Company's financial statements that the inherent value of the Company's stock is greater than $7.90 per share and also because the Board of Directors likely did not shop the Company to other potential buyers, to assure that the shareholders would get the best deal, prior to agreeing to sell the Company to Hewlett-Packard. 3Com Corporation, located in Marlborough, MA, is a global enterprise networking solutions provider. 3Com has three global product and solutions brands: H3C, 3Com, and TippingPoint that offer networking and security solutions to enterprises large and small. 3Com Corporation shares COMS traded at about $7.50 after the announcement and at about $5.60 per share the day before the announcement. 3Com reported in 2007 Total Revenue (ending on may 30, 2008) of $1.29488billion and in 2008 (ending on May 31, 2009) Total Revenue of $1.31698billion with a Net Income of $114.72million. Those who purchased 3Com Corporation (Public, NASDAQ:COMS) before the announcement and currently still hold the COMS shares, have certain options and you should contact the Shareholders Foundation.