Vultures circle over Data Domain

Law firm solicits people for class-action lawsuit.

Developments of the week in storage

Not a lot of news last week, but anticipating this week will be full of the gyrations between EMC and NetApp over the body of Data Domain. Already the carrion are circling ready to pick off the remainders – a law firm called Levi & Korsinsky is soliciting people in a class action securities litigation matter against Data Domain.

Here's their appeal: "On May 20, 2009, Data Domain agreed to sell the Company to NetApp Inc. (Nasdaq:NTAP) for cash and stock valuing Data Domain shares at approximately $25. On June 2, 2009, EMC Corp. announced that it would pay $30 per share in cash for the Company. On June 3, NetApp agreed to raise its offer price to $30 per share to be paid in a combination of cash and NetApp stock. In addition, NetApp offered positions on its board to certain Data Domain officers and there are rumors that the Data Domain CEO Slootman could be the next CEO of NetApp [Deni's note: That's the first time I've heard of this – sounds patently impossible; so far NetApp CEO Dan Warmenhoven is doing a great job]. This raises questions as to whether the sales process conducted by the Board was fair and open."

"Levi & Korsinsky is investigating breaches of fiduciary duty and other violations of state law by the Board of Directors of Data Domain arising out agreement to sell the Company under these terms."

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Not a lot of news last week, but anticipating this week will be full of the gyrations between EMC and NetApp over the body of Data Domain. Already the carrion are circling ready to pick off the remainders – a law firm called Levi & Korsinsky is soliciting people in a class action securities litigation matter against Data Domain.

Here's their appeal: "On May 20, 2009, Data Domain agreed to sell the Company to NetApp Inc. (Nasdaq:NTAP) for cash and stock valuing Data Domain shares at approximately $25. On June 2, 2009, EMC Corp. announced that it would pay $30 per share in cash for the Company. On June 3, NetApp agreed to raise its offer price to $30 per share to be paid in a combination of cash and NetApp stock. In addition, NetApp offered positions on its board to certain Data Domain officers and there are rumors that the Data Domain CEO Slootman could be the next CEO of NetApp [Deni's note: That's the first time I've heard of this – sounds patently impossible; so far NetApp CEO Dan Warmenhoven is doing a great job]. This raises questions as to whether the sales process conducted by the Board was fair and open."

"Levi & Korsinsky is investigating breaches of fiduciary duty and other violations of state law by the Board of Directors of Data Domain arising out agreement to sell the Company under these terms."

Vultures.

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Deni Connor is principal analyst for Storage Strategies NOW and host of both the Masters of Storage and Masters of Servers Solution Centers.