Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Shiva -- Ignore unavailable to you. Want to Upgrade?

To: Artslaw who wrote (4832)	11/25/1998 6:25:00 PM
From: bob zagorin	Respond to of 5036

Berman, DeValerio & Pease LLP Announces That An Additional Class Action Lawsuits Has Been Filed Against Shiva And Its Directors BOSTON, Nov. 25 /PRNewswire/ -- Another shareholder of Shiva Corporation (Nasdaq: SHVA) has filed a class action lawsuit in the Superior Court of Massachusetts for Middlesex County against the Company and its entire board of directors alleging that they have breached their fiduciary duties in agreeing to sell the Company to Intel Corporation (NASDAQ:INTC) for $6 per share in cash. The complaint asserts that the proposed merger is not in the best interests of Shiva shareholders, and that if the merger occurs, they will be forced out of their investments at a grossly unfair and inadequate price. Claims have been brought on behalf of all Company shareholders as of October 19, 1998, and their successors in interest, who have been or will be harmed by the wrongful conduct of the defendants. The lawsuit claims that for more than a year and a half, Shiva has undergone a substantial restructuring, and that its business is not only viable but poised for rapid growth and increased earnings with the introduction of its new Virtual Private Network products and technology. Now that Shiva promises to reward investors, the Company and its directors are cashing out the shareholders and selling the Company to Intel for far less than what it is reasonably worth. In doing so, the Plaintiff claims that they have breached their fiduciary duties, causing shareholders harm and damages. The complaint asserts that six of the eight Shiva directors have unique financial interests in the proposed merger, or close personal and business ties to Intel, that precluded them from negotiating the best deal for shareholders. It claims that the directors were obligated, but failed, to seek or consider competing offers or deals with other companies before accepting a merger with Intel, and failed to conduct a market check to test the reasonableness of Intel's offer. The Plaintiff asserts that during the past 2 years, the Company has rejected four offers from other potential acquirers, and that all of these offers were made at times when the price of Shiva stock was substantially higher than the $6 per share offered by Intel. The Plaintiff has requested (among other things) that the Court enjoin the proposed merger, order that the directors implement a bidding or auction process for Shiva, and award damages to its shareholders. Plaintiff is represented by the following law firms: Berman, DeValerio & Pease LLP and Chimicles & Tikellis LLP. If you would like more information on the lawsuit, or have information which you believe would assist this case, you may contact the following counsel: Michael G. Lange, Esq. Berman, DeValerio & Pease LLP One Liberty Square Boston, MA 02109 Phone: (617) 542-8300 (800) 516-9926 E-mail: bdplaw@bermanesq.com Website: www.bermanesq.com