Questcor Pharmaceuticals leaders under investigation after transaction announcement

A law office noted that it is investigating a pharmaceuticals company after it was purchased by a similar firm. Shareholders may be involved in a securities class action lawsuit, depending on the process’ outcome.

Law firm Robbins Arroyo, LLP, announced the investigation of Questcor Pharmaceuticals, Inc., after the company agreed to a proposed transaction with Mallinckrodt, plc. The terms of the deal would give shareholders $30 in cash for each share of Questcor Pharmaceuticals owned, as well as an additional 0.89 shares of Mallinckrodt. This brings the total earning level to approximately $86.10 per share.

However, there may have been issues with the Questcor Pharmaceuticals board, as it is possible they did not look to get the best deal possible for shareholders, thus hurting their investments. The agreed-upon share value has a premium of just 27 percent on the company’s closing price on April 4, 2014, which was $67.78 per share. Similar transactions had an average premium of 46 percent.

Additionally, there were other valuations that may signal the company was not sold at a high enough prices. An analyst at Piper Jaffray noted on Feb. 25, 2014, that the company’s target price was $98 per share, while another at Oppenheimer and Co., noted that it was worth $99 per share.

For any shareholders who are interested in learning about more details related to this case, as well as the options to file a class action claim down the line, speaking with the law office is possible. Darnell Donahue is specifically available to speak about these matters, and contacting him by email or telephone is best. The law firm’s website also has a shareholder information form available.

Second investigation underway
Another law firm explained that it will research claims against Questcor Pharmaceuticals for similar reasons. There is also a potential for litigation to develop through this process.

Law office Pomerantz, LLP, is looking into the purchase of Questcor Pharmaceuticals by Mallinckrodt. The deal potentially undervalues the company due to its price to earnings, interest taxes, depreciation and amortization, as well as its revenue measurements. These issues may signal that shareholder value was not maximized.

Shareholders who want to learn more about the process and how it may affect them should contact firm member Robert Willoughby. He can be best reached by telephone or email.