San Diego, CA -- (SBWIRE) -- 04/02/2012 -- An investor in NASDAQ:ISTA shares filed a lawsuit against members of the board of directors of ISTA Pharmaceuticals, Inc. in effort to block the proposed takeover of ISTA Pharmaceuticals, Inc. by Bausch + Lomb for $9.10 per NASDAQ:ISTA share.
Investors who purchased ISTA Pharmaceuticals, Inc. (NASDAQ:ISTA) shares prior to March 26, 2012 and currently hold (some of) those NASDAQ:ISTA shares have certain options and you should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
According to the complaint the plaintiff alleges that the defendants breached their fiduciary duties owed to NASDAQ:ISTA stockholders arising out of the attempt to sell ISTA Pharmaceuticals, Inc. to Bausch + Lomb at an unfair price via an unfair process.
On Monday, March 26, 2012, after the market closed, ISTA Pharmaceuticals, Inc. (NASDAQ: ISTA) and Bausch + Lomb and announced that they have signed an agreement under which Bausch + Lomb will acquire ISTA Pharmaceuticals, Inc. for $9.10 per share in cash, or a total of approximately $500 million.
However, the plaintiff alleges that the $9.10offer is unfair to stockholders in ISTA Pharmaceuticals, Inc. and undervalues the company. In fact, NASDAQ:ISTA traded in May 2011 as high as $11.26 per share and at least one analyst has set the high target price for NASDAQ:ISTA shares at $12 per share, thus both well above the $9.10offer.
Furthermore, the plaintiff alleges that the proposed transaction is also unfair because as part of the merger agreement defendants agreed to certain onerous and preclusive deal protection devices, such as a no shop, no solicitation, matching rights and a $14.5million termination fee provision, that operate conjunctively to make the proposed transaction a fait accompli and ensure that no competing offers will emerge for the company.
Those who are current investors in ISTA Pharmaceuticals, Inc. (NASDAQ:ISTA) and purchased their NASDAQ:ISTA shares 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