Lawyers recently began an investigation of a pharmaceutical firm after its board of directors agreed to be purchased by another company. A potential class action claim may come of this situation.
Law firm Brodsky and Smith, LLC, are looking into shareholder claims that the board of NuPathe, Inc., were in potential violation of laws and duties when they agreed that Endo Health Solutions would purchase them.
This deal would provide shareholders of NuPathe approximately $2.85 per share in cash. However, the company's board may not have properly shopped it around and had an adequate auction and sales process that would be best for those who had interest in the firm. With this in mind, it may be undervalued at its current offer.
Further issues with this pending transaction are due to the company's stock value being $4.81 per share on March 15, 2012, while this was also at $3.65 per share on April 10, 2013. An analyst examining NuPathe noted that its price target would be closer to $8.00 per share.
It is possible for shareholders to speak with the law office to learn more about their legal options. The best contacts are Jason Brodsky and Evan Smith, and they can be contacted by mail, telephone or email. Checking the law firm's website is also an option. Shareholders can talk about both legal issues related to the pending transaction, as well as questions regarding the investigation.
Second investigation underway
Another investigation into NuPathe's board of directors recently commenced, which also may have an outcome of a class action lawsuit.
Law firm Ryan and Maniskas, LLP, explained it is looking into the issues revolving around the NuPathe purchase by Endo Health Solutions. This is for many of the aforementioned reasons, as some law violations or fiduciary duty issues may exist.
This transaction, if approved, will cost Endo Health Solutions close to $105 million in cash. However, the undervaluing issue that shareholders complained about may still be in play at this time.
For those who are shareholders of the company and have further questions about the investigation, or other issues related to this pending transaction, speaking with the law firm is an option. The best contact is Richard Maniskas, and he can be reached by phone or email. The firm's website also has the investigation's information viewable to shareholders.