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Covidien receives securities class action lawsuit

A law office recently announced that it filed a securities class action lawsuit against a health care company, due to potential violations of federal securities laws after it agreed to a merger with another company

Law firm Robbins Arroyo, LLP, noted that the litigation was filed in the U.S. District Court for the District of Massachusetts against Covidien, plc. This included all shareholders who acquired interests in the company before the announcement of its proposed merger agreement with Medtronic, Inc.

The company announced that it reached the merger on June 15, 2014, which would provide shareholders with a combined amount of $93.22 per share. This was split into $35.19 in cash, as well as 0.956 in stock of the new company. The company's leaders filed a registration statement with the Securities and Exchange Commission that may have been false or misleading. Due to this, the lawsuit alleges that Covidien's leaders violated the Securities and Exchange Act of 1934, specifically Sections 14(a), 20(a) and Rule 14a-9.

It is a possibility for shareholders to take advantage of the lead plaintiff position in the case if they owned stock in the company before or on June 15, 2014. Those interested parties need to file all necessary paperwork with the court within 60 days of Aug. 19, 2014. The action is not mandatory, and shareholders may still have the ability to remain absent class members, still collecting in the event of a payout.

Additional details can be obtained by contacting the law office. The best person to speak with is Darnell Donahue, and he can be reached by telephone or email. It is also possible to learn more about the case by visiting the law firm's website.

Second lawsuit filed
Another law office noted that it filed litigation against the company due to many of the aforementioned reasons.

Levi and Korsinsky, LLP, noted that it also filed a class action lawsuit against the leaders of Covidien due to the planned merger with Medtronic.

Shareholders have the ability to speak with this law office to learn more about the case and how they may be affected. Joseph Levi is the best person to discuss these matters with, and he can be contacted by telephone or email. The law firm's website provides further details on the case.

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