A10 Networks Inc.
Type of Case:
On June 24, 2015, Bottini & Bottini filed a shareholder derivative lawsuit on behalf of A10 Networks, Inc. in Santa Clara, California County Superior Court. The complaint alleges that, during the Relevant Period (April 2012 to the present), the Individual Defendants caused the Company to infringe patents and intellectual property held by Foundry Networks, which was subsequently acquired by Brocade Communications Systems, Inc. After being sued by Foundry and Brocade, A10 Networks was forced to pay $75 million to settle the case. The Individual Defendants’ wrongdoing also caused the Company to lose out on millions of dollars of revenue, as the Company’s customers refused to purchase the Company’s products due to uncertainty related to the patent infringement claims by Foundry and Brocade.
The Complaint also alleges that, during the Relevant Period, and in connection with the Company’s Initial Public Offering (“IPO”), the Individual Defendants breached their fiduciary duties of candor and loyalty by causing the Company to issue a materially false and misleading Prospectus and Registration Statement, subjecting the Company to being sued by investors who acquired their shares pursuant to the Registration Statement issued in connection with the Company’s IPO. The Individual Defendants also failed to ensure that the Company had adequate internal controls in place.
The suit seeks to recover the substantial damages caused to the Company by the Individual Defendants’ self-dealing and breaches of fiduciary duties.
