Sprint Nextel settles lawsuits seeking to enjoin Sprint's acquisition of Virgin Mobile
Clients Sprint Nextel Corporation
Jones Day represented Sprint Nextel Corporation ("Sprint") and one of its officers in several class action lawsuits filed in New Jersey federal and state courts seeking to enjoin Sprint's acquisition of Virgin Mobile USA ("VMU"), which was announced on July 28, 2009. In the lawsuits, plaintiffs sought damages and injunctive relief alleging, among other things, that VMU and the named officers and directors breached their fiduciary duties to VMU's stockholders by, among other things: (i) failing to engage in a process best calculated to maximize stockholder value; and (ii) failing to provide full and complete disclosures concerning matters that a reasonable stockholder would deem important under the circumstances. Plaintiffs further alleged that Sprint and Sprint Mozart (the merger sub) aided and abetted the other defendants' breaches of fiduciary duties. The parties reached a settlement of the lawsuits, pursuant to which certain additional disclosures were made in the proxy statement filed with the SEC in connection with the transaction.
Don Kerdman, et al., v. Daniel Schulman, et al., No. C-12062-09 (Consolidated with C-12083-09, C-12084-09, C-12085-09, and C-12086-09) (N.J. Super. Ct. Ch. Div.)