SAN JOSE – Minority shareholders of a San Jose corporation allege that the majority shareholder blocked a potential acquisition of the corporation for its own benefit.
Sanjiv Kaul, Sanjiv Narayan, Mark Milligan, Nikhil Sharma, Cipio Partners Private Fund IV Gmbh & Co KG, Narra Venture Capital LP, Narra Venture Capital II LP and Narra Associates II Limited filed a complaint on May 9 in the U.S. District Court for the Northern District of California, San Jose Division against Mentor Graphics Corp. citing alleged breach of fiduciary duty.
According to the complaint, the plaintiffs are minority shareholders of Calypto Design Systems and the defendant is a majority shareholder. The suit states that the defendant blocked a potential acquisition of Calypto specifically for acquiring Calypto for itself at a reduced valuation. The plaintiffs hold Mentor Graphics Corp. responsible because the defendant allegedly abused its position as the majority shareholder of Calypto for its own benefit.
The plaintiffs request a trial by jury and seek compensatory damages, exemplary and punitive damages sufficient to punish the defendant, all legal fees and any other relief as the court deems just. They are represented by Timothy T. Scott, Samuel R. Diamant and Matthew H. Dawson of King & Spalding LLP in Palo Alto.
U.S. District Court for the Northern District of California, San Jose Division Case number 5:16-cv-02496