Securities Law News

Qualcomm-Broadcom Merger Suit Gets Lead Counsel, Plaintiff

Jan. 23, 2019, 4:06 PM

Robbins Geller Rudman & Dowd LLP and Kessler Topaz Meltzer & Check LLP will lead a group of investors suing Qualcomm Inc. for allegedly tanking Broadcom Ltd.‘s $117 billion acquisition attempt.

And investor Gatubhai Mistry will serve as lead plaintiff. He didn’t have the largest financial interest, but is probably most typical of other class members, Judge Anthony J. Battaglia said Jan. 22.

Qualcomm investors accused the firm of secretly asking the Committee on Foreign Investment in the United States to investigate Broadcom in January 2018 and prevent the merger. Once the scheme became public in March, Qualcomm’s share price declined, the investors said.

Mistry faced off against Daljit Singh for appointment as lead plaintiff. A third investor, Bradley Leach, initially moved for appointment, but later told the court he wouldn’t oppose Mistry and Singh’s motions.

Singh claimed a loss of over $340,000 to Mistry’s $75,000, making his easily the largest financial interest, the order said. But Singh “failed to include any basic details about himself, including where he lives or who he is specifically in his motion,” so the judge couldn’t determine if he “would indeed be a typical plaintiff for the class.” Mistry is a “better choice” for lead plaintiff because he gave the court details and his filings contained fewer errors, according to the order.

Mistry selected Robbins Geller and Kessler Topaz, the firms that have represented him so far in the suit, as class counsel. Because the firms have a history of working collaboratively in securities class actions, the judge appointed them as lead counsel.

Battaglia sits on the U.S. District Court for the Southern District of California.

The Rosen Law Firm PA represented Singh. Levi & Korsinsky LLP represented Leach.

The case is Camp v. Qualcomm Inc., 2019 BL 20286, S.D. Cal., No. 18-cv-1208, 1/22/19.

To contact the reporter on this story: Jennifer Bennett in Washington at jbennett@bloomberglaw.com

To contact the editor responsible for this story: Jo-el J. Meyer at jmeyer@bloomberglaw.com

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