AuthenTec's board under investigation after Apple buy

AuthenTec, the security company Apple quietly scooped up last month, is now under scrutiny by shareholders.

AuthenTec

The board of AuthenTec is under investigation by New York-based law firm Levi & Korsinsky following its pending acquisition by Apple.

In a note to AuthenTec investors this morning, the firm said it is looking into whether the company broke any laws, and "adequately" shopped itself around to potential buyers before selling to Apple.

"The claims concern whether the AuthenTec board of directors breached their fiduciary duties to AuthenTec stockholders by failing to adequately shop the company before entering into this transaction and whether Apple is underpaying for AuthenTec shares, thus unlawfully harming AuthenTec stockholders," the firm said in a statement.

News of Apple's acquisition of the security company was discovered late last week in one of AuthenTec's filings with the U.S. Securities and Exchange Commission. Neither company issued a release about the news, or featured information about it on their site.

Under the terms of the deal, AuthenTec shareholders are slated to get $8 per share, while the transaction itself is worth about $350 million. At the time it was discovered, that price was a 58 percent premium over the company's closing price.

CNET has reached out to Apple for more information and will update this post when we know more.

About the author

Josh Lowensohn joined CNET in 2006 and now covers Apple. Before that, Josh wrote about everything from new Web start-ups, to remote-controlled robots that watch your house. Prior to joining CNET, Josh covered breaking video game news, as well as reviewing game software. His current console favorite is the Xbox 360.

 

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