Class Challenges Acquisition of PSS World Medical by McKesson
By STEVE TWEEDY
(CN) - PSS World Medical Inc. shareholders are challenging a $2.1 billion takeover in a shareholder class action lawsuit. Under the merger agreement, PSS shareholders would receive $29 per share in cash.
According to shareholder Rakesh Kapur, who owns over 10,000 shares of PSS stock, the deal undercuts the company's true value. "Each of the individual defendants breached their fiduciary duties owed to PSS and its stockholders in furtherance of their plan to protect and advance their own interests, at the expense of and to the detriment of PSS 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 PSS directors and executive "have clear and material conflicts of interest and are acting to better their own interests and the interests of PSS's other senior managers and directors at the expense of the company and its public shareholders."
"Defendants have initiated a process to sell PSS that undervalues the company and vests them with benefits that are not shared equally by PSS's public shareholders - a clear effort to take advantage of the temporary depression in PSS's stock price," the complaint states. "In addition, by agreeing to the proposed transaction. Defendants have capped the price of PSS 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