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Levi & Korsinsky, LLP Launches an Investigation into the Possible Breaches of Fiduciary Duty by the Board of Netezza Corporatio

^{Published on 2010-09-20 07:50:21 - Market Wire}
 

NEW YORK--([ BUSINESS WIRE ])--Levi & Korsinsky is investigating the Board of Directors of Netezza Corporation (aNetezzaa or the aCompanya) (NYSE: NZ) for possible breaches of fiduciary duty and other violations of state law in connection with their attempt to sell the Company to International Business Machines Corp. ("IBM") (NYSE: IBM). Under the terms of the transaction, Netezza shareholders will receive $27 in cash for each share of Netezza common stock they own for a total transaction value of approximately $1.7 billion, after adjusting for cash.

On August 26, 2010, the Company posted better than expected earnings of $3.2 million, or $0.05 per share, compared to $730,000, or $0.01 per share, in the same quarter last year and also reported that revenue was up 45%, to $63.8 million. The investigation concerns whether the Netezza Board of Directors breached their fiduciary duties to Netezza stockholders by failing to adequately shop the Company before entering into this transaction and whether IBM is underpaying for Netezza shares, thus unlawfully harming Netezza stockholders. In particular, the offer price is only a nominal premium over the $25.20 share price that Netezza stock traded at as recently as September 16, 2010.

If you own common stock in Netezza and wish to obtain additional information, please contact Joseph E. Levi, Esq. either via email at [ jlevi@zlk.com ] or by telephone at (212) 363-7500 or visit [ http://www.zlk.com/netezza-nz.html ].

Levi & Korsinsky has expertise in prosecuting investor securities litigation and extensive experience in actions involving financial fraud and represents investors throughout the nation, concentrating its practice in securities and shareholder litigation.