Dell-EMC deal slapped with legal challenge

Law firm files complaint on behalf of public stockholders

A law firm has filed a legal complaint on behalf of EMC public shareholders it claims "are or will be damaged" by Dell's planned takeover.

The complaint, which has been filed by New York-based TheGrantLawFirm, relates to a document filed with the US Securities and Exchange Commission which it claims contains "false and misleading" statements and "omissions of material fact".

"Specifically, the complaint asserts that the [file] omits material information concerning the company's projections, including the company's unlevered free cash flows, GAAP revenue, gross profit, operating income, net income and EPS, and various charges," the firm said in a statement.

"It also asserts that the analysis of the two investment advisers who opined upon the fairness of the proposed transaction to EMC's shareholders from a financial point of view, are materially misleading and/or make omissions of material fact."

A lead plaintiff is sought by the law firm to act as a representative for the class action suit, which allows a group's interests to be served by a main spokesperson.

The legal proceedings are not the first to be filed regarding the Dell-EMC deal. Law360 reports that last year a shareholder filed a class action claiming that the proposed takeover was structured to benefit company directors and harm shareholders.