SRKW forces enhanced disclosures to shareholders regarding the Qualcomm/Atheros deal

On March 4, 2011, the Delaware Court of Chancery issued a preliminary injunction halting the March 7, 2011 shareholder vote on Qualcomm Incorporated's proposed $3.1 billion acquisition of Atheros Communications, Inc. SRKW successfully argued that Atheros' proxy misled shareholders about the contingent nature of the $24 million fee to its financial adviser, Qatalyst Partners, and the timing of when certain members of Atheros' senior management learned they would be retained by Qualcomm. In accordance with the Court's ruling, Atheros released supplementary proxy disclosures for its shareholders on March 7, 2011 and rescheduled the shareholder vote on the proposed transaction for March 18, 2011. The issuance of a preliminary injunction regarding disclosures is rare. That the Court did so in this case was a victory for Atheros' shareholders and was led by the SRKW team of Robert M. Roseman, Andrew D. Abramowitz and Daniel J. Mirarchi. Their time sensitive efforts were lauded by the Honorable John W. Noble, Vice Chancellor, during the preliminary injunction hearing as he recognized that "outstanding work [of counsel] ... was done under awful time constraints" and that the "efforts here were exemplary . . . ."