Class action lawsuit over Dell-EMC merger still lingers

Dell Inc.’s proposed merger with EMC Corp. has prompted 15 class action lawsuits, and at least one of the suits is still being considered in a court of appeals, EMC reported Monday in a regulatory filing.

The Massachusetts-based technology giant reported that 13 of the lawsuits were filed “purportedly” on behalf of EMC (NYSE: EMC) shareholders, and two on behalf of shareholders of affiliate VMware Inc. (NYSE: VMW).

A consolidated lawsuit involving nine plaintiffs was dismissed in December 2015 but it has been under appeal before the Massachusetts Supreme Judicial Court since June. The $60 billion merger, which was overwhelmingly approved by EMC shareholders on July 19, is scheduled to be completed during the third quarter that ends Sept. 30, according to the EMC filing with the U.S. Securities and Exchange Commission.

Eleven of the lawsuits alleged the merger violated the fiduciary duties of EMC directors. Some lawsuits also alleged EMC "aided and abetted the alleged breaches of fiduciary duty by the directors."

Plaintiffs in the initial 15 lawsuits include several labor organizations such as IBEW Local No. 129 in Ohio, the City of Miami Police Relief and Pension Fund and the City of Lakeland Employees Pension and Retirement Fund, the filing indicates.

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