Securities Class Action Clearinghouse

Class Action: Illumina & Brocade

Illumina and Brocade Communications are both in my portfolio, so when I saw them pop up at the Securities Class Action Clearinghouse I decided to share the information with my readers. It has been a while since I mentioned the Clearinghouse, a great resource to learn about recent class action filings.

Securities Class Action Clearinghouse

Ticker Symbol: ILMN

Market: NASDAQ

Class Period: 07/26/2016 – 10/10/2016

Court: S.D. California

Date of filing: 12/16/2016

Plaintiff Firm: Glancy Prongay & Murray LLP

SIC Code: 3826

Sector Classification: Healthcare

Industry Classification: Biotechnology & Drugs


Summary: According to the law firm press release, the filed complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and failed to disclose: (1) that the Company was experiencing a large decline in high throughput sequencing instrument sales; (2) that the decline was negatively impacting the Company’s revenue; (3) that the Company lacked visibility into trends that could have a substantial impact on the Company’s financial results; (4) that, as such, the Company’s revenue guidance was unreliable and overstated; and (5) that, as a result of the foregoing, Defendants’ positive statements about Illumina’s business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.


SCAC website


Ticker Symbol: BRCD

Market: NASDAQ


Class Period: 11/02/2016 – 12/15/2016

Court: N.D. California

Date of filing: 12/15/2016

Plaintiff Firm: Gainey McKenna & Egleston

SIC Code: 3576

Sector Classification: Technology

Industry Classification: Computer Storage Devices


Summary: According to the Complaint, on November 2, 2016, Brocade announced that it had entered into an Agreement and Plan of Merger (the “Merger Agreement”), pursuant to which a wholly owned subsidiary of Broadcom will merge with and into the Brocade, with Brocade continuing as the surviving corporation and as a wholly owned subsidiary of Broadcom (the “Proposed Transaction”).  Pursuant to the terms of the Merger Agreement, Brocade shareholders will receive $12.75 in cash for each Brocade share they own (the “Merger Consideration”).

The Complaint alleges the Merger Consideration is insufficient and undervalues the Company and is the result of a flawed sales process.


SCAC website

So, if the above is of interest, you might want to subscribe to the Securities Class Action Clearinghouse (link). Actually, they call it registering. Just click on Register at the top right of any page. Plenty of worthwhile resources available on the site for anyone interested in class action events or research.

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