updated 9/27/2010 9:45:36 AM ET 2010-09-27T13:45:36

SAN DIEGO, Sept. 27, 2010 (GLOBE NEWSWIRE) -- The Shareholders Foundation, Inc. announces that an investor of Netezza Corporation (NYSE:NZ) filed a lawsuit in State Court against members of the board of directors alleging breaches of fiduciary duty arising out of their attempt to sell Netezza Corp. to IBM.

Those who currently are long term investors in shares of Netezza Corporation (NYSE:NZ) and purchased their shares prior to September 20, 2010, should contact the Shareholders Foundation, Inc. by e-mail at mail@shareholdersfoundation.com or call +1 (858) 779-1554.

On Monday, September 20, 2010, Netezza Corporation (NYSE:NZ) and IBM (NYSE:IBM) announced they have entered into an agreement for IBM to acquire Netezza in a cash transaction at a price of $27 per share or at a net price of approximately $1.7 billion, after adjusting for cash.

The plaintiff alleges that Netezza's directors breached their fiduciary duties owed to the NZ investors because they did not obtain the highest price.  At first sight the IBM offer seems to represent a 7.1% premium, considering NZ shares traded just days before the announcement at $25.20, but Netezza shares increased after the takeover news to as high as $28.57 on Monday and as high as $28.86 on Wednesday.  Thus, NZ shares traded on the open market since the takeover announcement well above the current offer of $27 and the offered price represents now not only a nominal premium over the $25.20 share price, but IBM would acquire NZ shares currently at a discount to the current market price.  In addition, the plaintiff claims the offer should also be higher since Netezza has been performing admirably, having net tangible asserts of over $209 million and positive cash flow, such as in $0.05 per share in the last quarter and $0.15 per share over the last four quarters.  The plaintiff also questions whether the defendants failed to adequately shop Netezza Corporation before entering into the transaction and alleges that the defendants breached their fiduciary duties because they agreed to provisions in an attempt to lock-up the low acquisition price.  Despite a no solicitation clause, which bars Netezza Corp. from directly or indirectly facilitating any other competing merger proposals, the defendants also agreed to a hefty $56 million, or approximately 25% of Netezza Corp's assets, as a termination fee.

Those who currently are investors Netezza Corporation (NYSE:NZ) and purchased their shares before the announcement, should contact the Shareholders Foundation, Inc.

The Shareholders Foundation, Inc. is an investor advocacy group which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. The Shareholders Foundation, Inc. is not a law firm.  The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

The Shareholders Foundation, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6931

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