Levi & Korsinsky LLP Investigates Possible Breach of Fiduciary Duty by Board of CombinatoRx, Inc. - CRXX

• Press Release
• Source: Levi & Korsinsky
• On 2:25 pm EDT, Wednesday September 30, 2009

NEW YORK--(BUSINESS WIRE)--Levi & Korsinsky (“L&K”) is investigating the Board of Directors of CombinatoRx, Inc. (“CombinatoRx” or the “Company”) (NasdaqGM: CRXX - News) for possible breaches of fiduciary duty and other violations of state law in connection with an announced merger with Neuromed Pharmaceuticals, Inc. ("Neuromed"), a privately-held biopharmaceutical company. Under the terms of the transaction, CombinatoRx is expected to issue approximately 36 million new shares of its common stock to Neuromed stockholders with each party owning approximately 50% of the voting power of the post-merger entity upon closing. Relative ownership of CombinatoRx will then be adjusted based upon the outcome of the FDA’s review of the NDA product candidate, Exalgo™.

Related Quotes

Symbol	Price	Change
CRXX	1.11	+0.03

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The investigation concerns whether the CombinatoRx Board of Directors breached their fiduciary duties by (i) entering into a merger agreement that is financially unfair to CombinatoRx shareholders; (ii) failing to disclose to CombinatoRx shareholders material information regarding the merger; and (ii) agreeing to a "no shop" provision and a termination fee that will all but ensure that no superior offer will ever be forthcoming.

If you own common stock in CombinatoRx and wish to obtain additional information, please contact us at the number listed below or visit http://www.zlk.com/crxx1.html.

Levi & Korsinsky has expertise in prosecuting investor securities litigation and extensive experience in actions involving financial fraud and represents investors throughout the nation, concentrating its practice in securities and shareholder litigation.

Levi & Korsinsky, LLP
Joseph Levi Esq., 212-363-7500
or
Eduard Korsinsky, Esq., 212-363-7500
Fax: 212-363-7171
www.zlk.com