NEW YORK, May 21, 2009 (GLOBE NEWSWIRE) -- The law firm of Levi & Korsinsky LLP ("L&K") has initiated an investigation into the circumstances surrounding the acquisition of Data Domain, Inc. ("Data Domain" or the "Company")(Nasdaq:DDUP) by NetApp Inc. (Nasdaq:NTAP). L&K is investigating breaches of fiduciary duty and other violations of state law by the Board of Directors of Data Domain arising out of their agreement to sell the Company to NetApp. Under the terms of the agreement, Data Domain shareholders will receive $11.45 in cash and between 0.682 and 0.833 shares of NetApp stock for each share of Data Domain they own. Based on the closing price of NetApp stock prior to the announcement, the transaction is valued at approximately $25 per share, or about $1.5 billion. The transaction appears to be unfair because, based on the average closing price of NetApp stock for the last six-months, the transaction is worth only about $24 per share -- a negligible premium to Data Domain's $23.61 share price of as recently as September 25, 2008. Furthermore, the sales process the Company conducted was flawed given that, in contravention of their fiduciary duties to maximize shareholder value, the Company's Board agreed to a "no-shop" provision and a $57 million termination fee which will ensure no superior offer will ever be forthcoming.
If you own common stock in Data Domain and wish to obtain additional information, please contact us at the number listed below or visit http://www.zlk.com/ddup1.html
L&K has extensive experience in prosecuting investor securities litigation involving financial fraud and represents investors throughout the nation, concentrating its practice in securities and shareholder litigation.