News Column

Newman Ferrara LLP Announces Investigation of Auxilium Pharmaceuticals, Inc.

July 14, 2014



By a News Reporter-Staff News Editor at Pharma Business Week -- Newman Ferrara LLP has begun an investigation into potential claims against the board of directors of Auxilium Pharmaceuticals, Inc. ("Auxilium") (NASDAQ:AUXL) concerning its proposed merger agreement with QLT Inc. (NASDAQ:QLT) (see also Newman Ferrara LLP).

On June 26, 2014, Auxilium announced that it had entered into an agreement and plan of merger to be acquired by QLT under which Auxilium stockholders will receive 3.1359 shares of QLT stock for each share of Auxilium stock owned. Based on QLT's closing stock price on June 26, 2014, the proposed merger would provide implied value to Auxilium stockholders of only $19.41 per share of Auxilium stock owned. However, Auxilium stock was trading at above that implied offer price on June 25, 2014, the day before the deal was announced, when Auxilium stock closed at $21.23 per share. That implied offer price is also far below the 52-week trading high of Auxilium common stock of $32.89 per share.

Newman Ferrara's investigation concerns whether Auxilium's Board of Directors has breached its fiduciary duties to act in the best interests of Auxilium's stockholders. The investigation focuses on the potential unfairness of the consideration being provided to Auxilium's stockholders and the process by which Auxilium's Board of Directors considered and approved the proposed deal.

Concerned investors may contact Newman Ferrara attorney Roy Shimon at rshimon@nfllp.com to discuss this investigation, their rights, or potential remedies.

Newman Ferrara maintains a multifaceted practice based in New York City with attorneys specializing in complex commercial and multi-party litigation, securities fraud and shareholder litigation, consumer protection, civil rights, and real estate. For more information, please visit the firm website at www.nfllp.com.

Keywords for this news article include: Legal Issues, Newman Ferrara LLP.

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Source: Pharma Business Week


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