Silicon Storage Technology, Inc. Hit By Shareholder Lawsuit

An broker in Silicon Storage Technology has filed a accusation adjoin Silicon Storage, the Company's Board of Directors, Prophet Equity LLC, and Technology Resource Holdings, Inc., a wholly endemic accessory of Prophet in the Superior Court of the State of California on account of accepted investors Silicon Storage Technology, Inc. (Public, NASDAQ:SSTI), who purchased the shares afore November 13, 2009, over declared breaches of fiduciary assignment in affiliation with an declared arbitrary takeover price.

Those who currently are investors in shares of Silicon Storage Technology, Inc. (NASDAQ:SSTI), and purchased the shares afore November 13, 2009, and / or accept added advice apropos to the investigation, should acquaintance the Shareholders Foundation, Inc. at email: mail(at)shareholdersfoundation.com or at: +1 (858) 779 - 1554.

According to the complaint, filed on November 16, 2009, the plaintiff alleges breaches of fiduciary duty, biased accessory and violations of accompaniment laws apropos to the proposed going-private deal. On November 13, 2009, Silicon Storage Technology, Inc. (NASDAQ: SSTI), appear that it has entered into a absolute alliance acceding to be acquired by Technology Resource Holdings, Inc., a Prophet Equity LP-controlled entity, as able-bodied as by associates of Silicon Storage Technology's administration team. Prophet Equity LP will access all of the outstanding accepted banal of the aggregation for $2.10 per share, except for shares captivated by Bing Yeh, Silicon Storage Technology's Chairman and Chief Executive Officer, and Yaw Wen Hu, Silicon Storage Technology 's Executive Vice President and Chief Operating Officer and affiliate of the Board of Directors, who accept agreed to barter all of their shares of SST accepted banal for shares of basic banal of the consistent abreast captivated company. According to Silicon Storage Technology the axle of admiral accustomed the acceding and the action represents about a 13 percent exceptional to the closing amount per allotment of SST's banal on November 12, 2009.

But shares of Silicon Storage Technology (SSTI) traded at $2.30 per allotment afterwards the announcement, appropriately aloft the present offer. SSTI shares were down from its 52weekHigh of $3.08 per share, $3.46 per allotment in August 2008, $5.79 per allotment in 2007, and about $15 per allotment in 2004 and according to the complaint, the associates of the Company's Board breached their fiduciary duties by approving the management-led accretion of Silicon Storage by clandestine disinterestedness buyers TRH and Prophet for bare application and beneath affairs arbitrary to accessible Silicon Storage shareholders. Among added allegations, the complaint alleges that the Company's Board suffers from cogent conflicts of interests because the Merger Agreement provides for the assiduity of SST's accepted administration (including Messrs. Yeh and Hu) and administration with the actual article and that clashing accessible shareholders assertive associates of administration will abide to own a pale in SST's growing business. Silicon Storage Technology, Inc., amid in Sunnyvale, California, is a supplier of NOR beam anamnesis semiconductor accessories for the agenda consumer, networking, wireless communications and Internet accretion markets. Silicon Storage Technology aswell produces and sells added semiconductor products, including NAND beam controllers and NAND Controller-based modules; acute agenda chip circuits (ICs), and modules; beam microcontrollers; and radio abundance ICs and modules.Silicon Storage Technology appear in 2007 Total Revenue of $411.75million and in 2008 Total Revenue of $315.54million.