Investigation underway for Forest Laboratories

The purchase of a prescription medication company is being investigated by a law firm after shareholders alerted it to potential fiduciary duty breaches. It is possible that this will become a securities class action lawsuit in the future.

Law office Rigrodsky and Long, P.A., noted that it is looking into claims against the board of directors at Forest Laboratories, Inc., after the company agreed to a proposed purchase by Actavis plc, for close to $25 billion.

If the deal is approved, those who owned shares in the company would receive $26.04 in cash, as well as 0.3306 shares of Actavis per share of Forest Laboratories stock held. With the Feb. 14, 2014 price of Actavis stock, it would give a valuation of $89.48 per share.

However, the figures may be too low, and it could have involved the board of directors not shopping the company around to get the best deal available for shareholders to profit. One analyst from Yahoo! Finance explained that the stock target price was $91.00 per share of Forest Laboratories stock.

It is possible for shareholders to speak with the law office to learn more about the investigation and how it may affect them, as long as they purchased interests before Feb. 18, 2014. Both Seth Rigrodsky and Gina Serra are available from the law firm to discuss these issues. They can be reached by email or telephone. The firm's website also has information available regarding the process.

Second investigation begins
Another law office will investigate the board of directors of Forest Laboratories due to shareholders issues with the proposed transaction. This also has the potential to become a class action claim at a later date.

Pomerantz, LLP, noted it began an investigation of Forest Laboratories due to the proposed transaction involving Actavis. Many of the aforementioned reasons are also at the center of this investigation. Additionally, despite this purchase, many managers at Forest Laboratories may remain with the company. There also may be issues related to synergy that are not prevalent in the agreed to transaction price.

If any shareholders are interested in learning more about the purchase, investigation or how their rights may be affected by these issues, speaking to the law firm is an option. Firm member Robert Willoughby is available to field questions, and he can be reached by email or telephone.