Securities Litigation: Danka Business Systems

DCML, L.L.P. v. Danka Business Systems, PLC et al
USDC SD New York
Foreign Company

Company background

Litigation background

SEC disclosures

Form 10-Q 8.14.08 At page 18
Litigation: On June 27, 2008, DCML LLC (DCML), the beneficial owner of approximately 8.1% of the Companys outstanding ordinary shares, filed a complaint in the U.S. District Court for the Southern District of New York against the Company, its board of directors, and one of the holders of the Companys 6.50% senior convertible participating shares (collectively, the defendants) alleging that the defendants violated Section 14(a) of the Securities Exchange Act of 1934 and Rule 14a-9 thereunder in connection with the proxy statement and supplement to proxy statement issued by the Company to solicit votes with respect to the sale of DOIC, a proposed members voluntary liquidation and related proposals, which were voted on by Danka shareholders at an extraordinary general meeting held on June 27, 2008. The complaint also alleges that the Companys board of directors breached its fiduciary duties to ordinary shareholders by, among other things, recommending that Danka shareholders vote in favor of the sale of DOIC, the proposed members voluntary liquidation and related proposals. The complaint seeks, among other things, unspecified compensatory damages. On July 9, 2008, the plaintiff filed an amended complaint.

Complaint