Legato shareholders sue to block EMC acquisition

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Legato shareholders sue to block EMC acquisition

EMC's $1.3bn (£816m) acquisition of Legato Systems has come to a halt after Legato shareholders filed two lawsuits claiming "breach of fiduciary duty and self-dealing" against Legato and its board of directors.

EMC agreed to buy Legato, a maker of storage management software, to fill product gaps in its storage infrastructure and data management software offerings last week.

EMC said that it expected to complete the acquisition in the fourth quarter of this year, pending regulatory and approval and the consent of Legato shareholders.

Legato claimed that the lawsuit allegations were meritless, while EMC declined to comment on the lawsuit.

"This is a Legato issue. We don't comment on ongoing litigation," said an EMC spokesman.

Robert McMillian writes for IDG News Service


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