SanDisk Corp., the worlds largest flash memory supplier, has been sued by two parties over its proposed acquisition of M-Systems Ltd., the firm said on Thursday.
Both suits, Dashiell v. SanDisk and Capovilla v. SanDisk, have been waged in the California Superior Court for Santa Clara County as class action claims on behalf of M-Systems' shareholders.
Last month, SanDisk announced plans to acquire Israel-based Msystems in a $1.35 billion deal, however Dashiell and Capovilla believe the proposed acquisition is marred by a number illegalities, and is not in the best interests of M-Systems shareholders.
The suits alleges that the Milpitas Calif.-based memory firm assisted M-Systems in neglecting certain fiduciary responsibilities, and also with regard to alleged option backdating,
The suits contends the takeover bid is not fair to M-Systems' shareholders and they call for it to be declared illegal, unenforceable, ask for compensation.