NEWSPAPER ARTICLE - SHAREHOLDER LAWSUIT FILED (Days left for shareholders to join)
Class Challenges Acquisition of Dusa by Sun
By STEVE TWEEDY
(CN) - Dusa Pharmaceuticals shareholders are challenging a takeover in a shareholder class action lawsuit. Under the terms of the agreement, Sun Pharmaceuticals will acquire Dusa for $8 per share in cash.
According to shareholder Rakesh Kapur, who owns over 10,000 shares of Dusa stock, the deal undercuts the company's true value. "Each of the individual defendants breached their fiduciary duties owed to Dusa and its stockholders in furtherance of their plan to protect and advance their own interests, at the expense of and to the detriment of Dusa and its public stockholders," the complaint states. "Among other things, the individual defendants have agreed to sell the company at an unfairly low price."
Kapur said Dusa directors and executive "have clear and material conflicts of interest and are acting to better their own interests and the interests of Dusa's other senior managers and directors at the expense of the company and its public shareholders."
"Defendants have initiated a process to sell Dusa that undervalues the company and vests them with benefits that are not shared equally by Dusa's public shareholders - a clear effort to take advantage of the temporary depression in Dusa's stock price," the complaint states. "In addition, by agreeing to the proposed transaction. Defendants have capped the price of Dusa at a price that does not adequately reflect the company's true value."
The prominant law firm Tripp Levy PLLC represents the class. Tripp Levy PLLC 877-772-3975