By a News Reporter-Staff News Editor at Pharma Business Week -- Shareholder Rights Law Firm Johnson & Weaver, LLP is investigating whether the Board of Directors of Forest Laboratories, Inc. (NYSE: FRX) breached its fiduciary duties in connection with the Company's proposed acquisition by Actavis plc (NYSE: ACT) (see also Pharmaceutical Companies).
On February 18, 2014, Actavis announced that it had entered into a definitive merger agreement to acquire Forest Laboratories for a combination of cash and equity valued at approximately $25 billion or $89.48 per Forest share ($26.04 in cash and 0.3306 Actavis shares for each share of Forest common stock).
The investigation concerns whether Forest's board members failed to satisfy their duties to the Company's shareholders, including whether the board adequately pursued alternatives to the acquisition and whether the board obtained the best price possible for the Company's shares of common stock. W. Scott Holleman, an attorney for Johnson & Weaver, stated that, "Actavis' offer appears to be inadequate and not in the best interest of the shareholders." Holleman continued, "I believe Forest stock should warrant a higher price and question the deal fairness considering Actavis is expecting immediate double-digit accretion to earnings."
If you are a Forest shareholder and would like additional information concerning your legal rights, please contact lead analyst Jim Baker (firstname.lastname@example.org) at 619-230-0063.
Johnson & Weaver, LLP is a nationally recognized shareholder rights law firm with offices in California and New York. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonandweaver.com. Attorney advertising. Past results do not guarantee future outcomes.
Keywords for this news article include: Pharmaceutical Companies, Legal Issues, Johnson & Weaver LLP.
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