Emulex Fights Broadcom Takeover

SANTA ANA, Calif. (CN) – Emulex claims Broadcom made false and manipulative statements in a May 5 press release about its hostile bid to buy Emulex for $9.25 a share. Among the allegations in this aggressive, 63-page complaint are that Broadcom’s two controlling shareholders profited from “the largest backdating securities fraud in U.S. history,” and that “Broadcom and its two controlling shareholders created and/or permitted a culture of illegal drug use, prostitution, payoffs, and death threats to advance Broadcom’s business interests and their own personal pleasure.”     Emulex wants the proposed takeover enjoined until Broadcom discloses to shareholders all of its alleged criminal conduct.     Emulex is represented by David Battaglia with Gibson, Dunn & Crutcher of Los Angeles.