Friday, April 17, 2009

New Institutional Investor Files federal Putative Class Action Challenging Merger

This morning, another new suit was filed -- (Case No. 09-1800, US Dist. Ct., NJ, complaint filed April 17, 2009) with many new breach of fiduciary duties counts and allegations. This time, the lead-plaintiff is the non-US institutional owner of over $10 million worth of Schering-Plough stock (a Scottish pension fund), and this time, the complaint recites that the proposed reverse merger is flawed, because, in addition to other valuation-related problems, it has threatened the viability of Schering's Remicade/Simponi rights -- "greater than $2 billion" of annual revenue -- thus reducing the value of the transaction. [Click below, to enlarge the image.]

More coming shortly, as I digest the full 24-page putative class action complaint. This makes at least 17 pending lawsuits -- each challenging the proposed reverse merger, and/or the process by which CEO Hassan & team reached this presently-proposed deal. Updated: At least five institutional investors have filed such suits [again, click to enlarge]:


Anonymous said...

How can I reach you? Got some great info!

Condor said...

Call Ed Silverman at In Vivo -- (write back if you don't know where he is) -- tell him "The Condor" said you could trust Ed Silverman with it.

I want nothing that is NOT already a public document.