A lawsuit was filed for current investors in shares of Human Genome Sciences (NASDAQ:HGSI) in effort to stop the proposed takeover and other current NASDAQ:HGSI stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 07/25/2012 -- An investor in shares of Human Genome Sciences (NASDAQ:HGSI) filed a lawsuit against directors of Human Genome Sciences in effort to block the proposed takeover of Human Genomes Sciences by GlaxoSmithKline at $14.25 per NASDAQ:HGSI share.
Investors who purchased shares of Human Genome Sciences (NASDAQ:HGSI) prior to July 13, 2012, and currently hold any of those ASDAQ:HGSI shares have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
The plaintiff alleges that defendants breached their fiduciary duties owed to NASDAQ:HGSI investors arising out of the attempt to sell the company too cheaply via an unfair process to GlaxoSmithKline.
On July 16, 2012, GlaxoSmithKline plc (LSE: GSK) and Human Genome Sciences (NASDAQ: HGSI) announced that the companies have entered into an agreement under which GlaxoSmithKline will acquire Human Genome Sciences for US$14.25 per share in cash.
The transaction values Human Genome Sciences at approximately US$3.6 billion on an equity basis, or approximately US$3 billion net of cash and debt.
Shares of Human Genome Sciences (NASDAQ:HGSI) jumped from $13.58 on Friday to $14.19 per share on Monday, July 16, 2012.
However, the plaintiff claims that the $14.25offer is unfair to HGSI stockholders and undervalues the company. In fact, NASDAQ:HGSI shares traded in April 2011 as high as $29.47 per share, thus at almost twice the takeover offer. In addition at least one analyst has set the high target price at $23.00 per NASDAQ:HGSI shares, thus also well above the current $14.25offer.
Those who are current investors in Human Genome Sciences (NASDAQ:HGSI) and purchased their Human Genome Sciences hares prior to the announcement, have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego