UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant
to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Dated of Report (Date of Earliest Event Reported): December 11, 2014
of
ARRIS GROUP,
INC.
A Delaware Corporation
IRS Employer Identification No. 46-1965727
Commission File Number 000-31254
3871 Lakefield Drive
Suwanee, Georgia 30024
(678) 473-2000
Not
Applicable
Former name or former address, if changed since last report
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any
of the following provisions:
|
¨ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|
¨ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
|
¨ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
|
¨ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
On December 11, 2014, the Delaware Court of Chancery (the Court) issued
an order granting preliminary approval of the agreement of the parties (the Proposed Dismissal) to dismiss as moot all claims in the derivative action styled The Fire and Police Pension Fund, San Antonio v. Robert J. Stanzione et.
al., C.A. No. 10078-VCG (the Derivative Action). The Derivative Action alleges breaches of fiduciary duty by members of the Board of Directors of ARRIS Group, Inc. (the Company) in connection with the approval of
certain provisions in the Companys credit facility. The credit facility was subsequently amended by the Company to delete the provisions that were the subject of the Derivative Action. Under the terms of the Proposed Dismissal, no damages will
be awarded. Plaintiffs counsel intends to make an application to the Court for an award of fees and expenses in an amount not to exceed $750,000. The Company reserves the right to oppose this fee application. Any fees and expenses awarded by
the Court will be paid by the Company. A hearing to determine whether the Court should issue an order granting final approval of the Proposed Dismissal or award fees and expenses to plaintiffs counsel has been scheduled for February 11,
2015, at 1:00 p.m. at the Delaware Court of Chancery in Georgetown, Delaware. Pursuant to the Courts order, any objections to any aspects of the Settlement must be filed with the Court no later than January 26, 2015. There can be no
assurance that the Proposed Dismissal ultimately will be approved by the Court.
Additional information concerning the terms of the proposed Settlement,
the February 11, 2015 hearing, and the requirements for objections can be found in the Notice of Proposed Dismissal of Class Action and Plaintiffs Fee Application (the Notice), which is attached hereto as Exhibit 99.1 and is
available for viewing on the Companys website at www.arrisi.com. The information on the Companys website is not a part of this Current Report and is not incorporated herein by reference.
|
|
|
Exhibit No. |
|
Description |
|
|
99.1 |
|
Notice of Proposed Dismissal of Class Action and Plaintiffs Fee Application |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned
hereunto duly authorized.
|
|
|
ARRIS Group, Inc. |
|
|
By: |
|
/s/ David B. Potts |
|
|
David B. Potts |
|
|
Executive Vice President and Chief Financial Officer |
Dated: December 12, 2014
EXHIBIT 99.1
IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
|
|
|
|
|
THE FIRE AND POLICE PENSION |
|
) |
|
|
FUND, SAN ANTONIO, |
|
) |
|
|
|
|
) |
|
|
Plaintiff, |
|
) |
|
|
|
|
) |
|
C.A. No. 10078VCG |
v. |
|
) |
|
|
|
|
) |
|
|
ROBERT J. STANZIONE, ALEX B. BEST, |
|
) |
|
|
HARRY L. BOSCO, JAMES A. CHIDDIX, |
|
) |
|
|
ANDREW T. HELLER, MATTHEW B. |
|
) |
|
|
KEARNEY, DEBORA J. WILSON, |
|
) |
|
|
DAVID A. WOODLE, AND WILLIAM H. |
|
) |
|
|
LAMBERT, and BANK OF AMERICA, N.A., |
|
) |
|
|
|
|
) |
|
|
Defendants, |
|
) |
|
|
|
|
) |
|
|
and |
|
) |
|
|
|
|
) |
|
|
ARRIS GROUP INC., |
|
) |
|
|
|
|
) |
|
|
Nominal Defendant. |
|
) |
|
|
|
|
) |
|
|
NOTICE OF PROPOSED DISMISSAL OF CLASS
ACTION AND PLAINTIFFS FEE APPLICATION
TO: |
All persons who held shares of Arris Group Inc. common stock at any time during the period from and including March 27, 2013 through October 27, 2014. |
The purpose of this Notice is to inform you about developments with respect to the above-captioned action (the Action), including
the proposed dismissal of the Action, the intention of counsel for The Fire and Police Pension Fund, San Antonio (Plaintiff) to make an application for an award of fees and expenses in connection with the Action, and your right to object
to the proposed dismissal of the Action and the application for an award to Plaintiffs counsel of fees and expenses in connection with the Action.
By way of background, on September 3, 2014, Plaintiff filed a putative Verified Class Action
and Derivative Complaint (the Complaint) in the Delaware Court of Chancery (the Court) alleging that (1) nine members of the board of directors of Arris Group Inc. (Arris or the
Company)Robert J. Stanzione, Alex B. Best, Harry L. Bosco, James A. Chiddix, Andrew T. Heller, Matthew B. Kearney, Debora J. Wilson, David A. Woodle, and William H. Lambert (collectively, the Individual Defendants and,
together with defendants Bank of America, N.A. (BANA) and nominal defendant Arris, the Defendants) violated their fiduciary duties by approving and/or maintaining a continuing director provision in a credit agreement between
Arris and BANA dated March 27, 2013 (the Continuing Director Provision and the Credit Agreement); (2) BANA aided and abetted that alleged breach; and (3) the Continuing Director Provision is invalid and
unenforceable.
Section 1.01(b) of the Credit Agreement included as a Change of Control the circumstance where:
during any period of 12 consecutive months, a majority of the members of the board of directors or other equivalent governing body of the
Company cease to be composed of individuals (i) who were members of that board or equivalent governing body on the first day of such period, (ii) whose election or nomination to that board or equivalent governing body was approved by
individuals referred to in clause (i) above constituting at the time of such election or nomination at least a majority of that board or equivalent governing body or (iii) whose election or nomination to that board or other equivalent
governing body was approved by individuals referred to in clauses (i) and (ii) above constituting at the time of such election or nomination at least a majority of that
board or equivalent governing body (excluding, in the case of both clause (ii) and clause (iii), any individual whose initial nomination for, or assumption of office as, a member of that
board or equivalent governing body occurs as a result of an actual or threatened solicitation of proxies or consents for the election or removal of one or more directors by any person or group other than a solicitation for the election of one or
more directors by or on behalf of the board of directors)[.]
Section 8.01(k) of the Credit Agreement treats a Change of Control as an Event of
Default. If an Event of Default occurs, the Credit Agreement gives BANA the option to accelerate the repayment of the Companys debt, which currently exceeds $1.5 billion. The Complaint alleges that Sections 1.01(b) and 8.01(k) of the
Credit Agreement undermines the Arris stockholder franchise by decreasing the likelihood of proxy challenges to the incumbent Arris board of directors.
On October 27, 2014, the Credit Agreement was amended and the Continuing Director Provision was deleted. Following the deletion of the
Continuing Director Provision, counsel for the parties determined that Plaintiffs claims in the Complaint were moot and agreed to pursue the dismissal of the Action as to all Defendants with prejudice as to Plaintiff and without prejudice as
to all other Arris stockholders (the Proposed Dismissal). No compensation of any form has passed directly or indirectly from any of the Defendants to the Plaintiff or Plaintiffs counsel and no promise to give any such compensation
has been made in connection with the deletion of the Continuing Director Provision from the Credit Agreement.
On December 11, 2014,
the Court entered an Order Establishing the Procedure for Considering the Dismissal of the Litigation and Plaintiffs Fee Application (the Procedure Order). The Procedure Order establishes procedures regarding the Proposed Dismissal
and a motion to be filed by Plaintiffs counsel that seeks an award of attorneys fees and expenses to be
paid solely by Arris in an amount not to exceed $750,000 based on the October 27, 2014 deletion of the Continuing Director Provision from the Credit Agreement (the Fee
Application). The parties intend to seek an Order dismissing the Action and resolving the Fee Application in the form attached hereto (the Final Order) after the expiration of the objection period, as detailed below.
RIGHT TO OBJECT
If you were a record
holder or beneficial owner of Arris common stock at any time during the period from and including March 27, 2013 through October 27, 2014 (the Relevant Period), you may object to the Proposed Dismissal or Fee Application, or
both. Every objection must be in writing and contain: (i) your name, address, email address, and telephone number; (ii) the number of shares of Arris stock you held during the Relevant Period, together with third-party documentary
evidence, such as the most recent account statement, showing such share ownership; and (iii) a detailed statement of your objections and all grounds therefore, including any supporting documents to be considered by the Court. Written objections
must be received within forty-five days of the date of this Notice or NO LATER THAN January 26, 2015. All such objections must identify the case number (C.A. No. 10078VCG) and must be filed with the Court at:
Register in Chancery
34 The Circle
Georgetown, DE 19947
Copies
of all such papers also must be sent to the following counsel in the Action:
|
|
|
Joel Friedlander FRIEDLANDER & GORRIS,
P.A. 222 Delaware Avenue, Suite 1400 Wilmington, DE
19801 |
|
Kevin G. Abrams ABRAMS & BAYLISS LLP
20 Montchanin Road, Suite 200 Wilmington, DE 19807 |
A hearing will be held before the Court, in the Court of Chancery Courthouse, 34 The Circle,
Georgetown, DE 19947, on February 11, 2015, at 1:00 p.m. to consider the Fee Application and any stockholder objection(s) filed in accordance with the procedure outline above. If you do not take the steps described above (or if you make
objections and those objections are rejected by the Court), you will be bound by the Final Order, which the Court may enter without further action by the parties or other Arris stockholders following the expiration of the objection period.
|
|
|
BY ORDER OF THE COURT |
|
/s/ Karla Johnson |
Register in Chancery |
Dated: December 12, 2014
ARRIS International plc (NASDAQ:ARRS)
Historical Stock Chart
From Mar 2024 to Apr 2024
ARRIS International plc (NASDAQ:ARRS)
Historical Stock Chart
From Apr 2023 to Apr 2024