On January 27, 2009, a patent infringement lawsuit was filed in the United States District Court in the Central District of California as Case No. CV09-00605 R (JWJx) against Emulex by Microprocessor Enhancement Corporation and Michael H. Branigin. The complaint alleges infringement of U.S. Patent No. 5,471,593, and seeks a judgment for damages, injunctive relief, and an award of attorneys’ fees and costs. On March 25, 2009, Emulex filed an answer to the complaint denying allegations and asserting affirmative defenses.
On April 21, 2009, Broadcom Corporation filed a lawsuit in the Court of Chancery of the State of Delaware against Emulex and its board of directors. The complaint asserts counts for declaratory relief and breach of fiduciary duty in connection with Emulex’s January 2009 amendments to its bylaws, adoption of a new shareholder rights plan to replace its expiring rights plan, and amendments to its Key Employee Retention Agreements. The complaint seeks declaratory and injunctive relief, as well as costs and disbursements, including attorneys and expert fees. The lawsuit was filed in conjunction with Broadcom’s announcement on April 21, 2009, of its proposal to acquire Emulex.
On April 27, 2009, Reid Middleton filed a lawsuit in the Court of Chancery of the State of Delaware on behalf of himself and all other similarly situated stockholders of Emulex and derivatively on behalf of Emulex. The complaint names the members of Emulex’s board of directors as defendants and Emulex as a nominal defendant. The complaint asserts a claim for breach of fiduciary duty on behalf of a putative class of holders of Emulex common stock and a derivative claim for devaluing the company relating to Emulex’s January 2009 amendments to its bylaws, adoption of a new shareholder rights plan to replace its expiring rights plan, and amendments to its Key Employee Retention Agreements, and Broadcom’s announcement of its proposal to acquire Emulex. The complaint seeks declaratory and injunctive relief, compensatory damages, interest and costs, including attorneys’ and expert fees.
Customer concentration: Last quarter's revenue domiated by IBM 24% and Hewlett-Packard 17%