TEWKSBURY, USA: Starent Networks Corp., a leading global provider of infrastructure hardware and software products and services that enable mobile operators to deliver multimedia services to their subscribers, announced that it and the other named defendants have entered into a memorandum of understanding with plaintiff’s counsel in connection with a putative class action lawsuit filed in the Chancery Court for the State of Delaware in connection with the proposed acquisition of Starent Networks by Cisco Systems Inc.
Under the terms of the memorandum, Starent Networks, the other named defendants and the plaintiff have agreed to settle the lawsuit, subject to court approval. If the court approves the settlement contemplated in the memorandum, the lawsuit will be dismissed with prejudice. Starent Networks and the other defendants deny all of the allegations in the lawsuit and believe the disclosures are appropriate under the law.
Nevertheless, Starent Networks and the other defendants have agreed to settle the putative class action lawsuit in order to avoid costly litigation and reduce the risk of any delay to the closing of the merger.
Pursuant to the terms of the memorandum, Starent Networks has agreed to provide additional information to stockholders through publicly available filings in order to supplement the proxy statement that has been provided to Starent Networks’ stockholders in connection with the special meeting of stockholders concerning the proposed merger.