Compass Lexecon’s Clients Prevail on Summary Judgment In Re: McAfee Inc. Shareholder Litigation

On November 2, 2012, California State Judge James Kleinberg granted summary judgment for defendants, our clients, in a suit that claimed that McAfee’s board had breached its fiduciary duty by entering into an Agreement and Plan of Merger in which Intel would acquire McAfee for $38 per share. Plaintiffs had alleged that the Acquisition was the product of a hopelessly flawed process dominated by McAfee’s purportedly conflicted CEO and designed to ensure the merger of McAfee and Intel, on terms preferential to Intel and defendants and detrimental to plaintiffs and McAfee’s shareholders. Compass Lexecon President Professor Daniel R. Fischel submitted a report and a rebuttal report on behalf of the defendants and testified via deposition. McAfee’s board of directors was represented by Boris Feldman and Rod Strickland of Wilson Sonsini Goodrich & Rosati PC. Intel was represented by Wayne Smith and Paul Collins of Gibson Dunn & Crutcher LLP. Professor Fischel was assisted by David Ross, Rajiv Gokhale, Quinn Johnson and Jonathan Polonsky of Compass Lexecon’s Chicago office.