Oclaro (OCLR) $15.25M Shareholder Settlement

Oclaro | $OCLR settles $15.25 million with its shareholders over $LITE merger-related claims.

The Case referred to a merger agreement signed in March 2018 between Oclaro (OCLR) and Lumentum (LITE), with Oclaro shareholders receiving a combination of cash and stock for each share they owned.

• The value of each Oclaro share was ~$9.99 at the time of the signing, based on the trading price of Lumentum shares.

• Later, in May 2018, Lumentum filed a statement in support of the merger.

However, the shareholder complaint alleged that the merger undervalued Oclaro. The Board created a special committee to oversee the merger, but the committee was flawed because the CEO and a director who would benefit from the merger were both on it, suggesting they did not fulfill their fiduciary duties to shareholders.