Forgent Networks files complaint and request for injunction causing dissident shareholder to file amended proxy materials
Clients Forgent Networks
Jones Day, representing Forgent Networks, filed a Complaint in the Western District of Texas after a dissident shareholder issued proxy materials nominating an opposing slate of directors to replace Forgent's board of directors. The Complaint alleged that the defendants violated Section 13(d) of the Securities and Exchange Act and Section 14(a) of the Exchange Act by failing to disclose that they were acting in concert as a "group" for the purpose of taking control of Forgent. Forgent sought a preliminary injunction compelling defendants to file a corrective disclosure that disclosed the existence of their group so that the shareholders would not be mislead in voting for a board of directors. After Forgent filed its complaint and motions to compel discovery, the lead dissident shareholder amended his proxy materials to disclose all of the allegations in the Complaint against him.
Forgent v. Sandberg et. al., No. 1:09-CV-499-LY (W.D. Tex., Austin Div)