San Diego, CA -- (SBWIRE) -- 09/11/2012 -- Several participants in the Stiefel Laboratories, Inc. Employee Stock Bonus Plan filed lawsuits over alleged breaches of fiduciary duties in connection with the sale of Stiefel Laboratories, Inc. to GlaxoSmithKline in 2009.
Those who are current or former participants in the Stiefel Laboratories, Inc. Employee Stock Bonus Plan, have certain options and should contact the Shareholders Foundation, Inc. at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
The plaintiffs allege that the defendants breached their fiduciary duties in connection with the sale of Stiefel Laboratories, Inc. to GlaxoSmithKline in 2009. One plaintiff says that hundreds of former Stiefel Laboratories, Inc employees were victim to the same pervasive acts of self-dealing, namely the disingenuous repurchase of substantial amounts of Stiefel Laboratories, Inc stock at grossly undervalued prices while defendats secretly planned to sell the company.
One plaintiff says that the Company and the Stiefel family members have steadfastly asserted to the public, to their employees and to Employee Plan participants that the Company was not for sale and would remain independent and each year, the valuation of Employee Plan Stock was announced by a written communication from Charles W. Stiefel to the Employee Plan participants. As of March 31, 2008 the defendants represented the valuation of Employee Plan Stock at $16,469 per share (the “2008 Valuation”), so the plaintiff.
According to one complaint upon termination of an employee from Stiefel Laboratories, Inc, each vested Employee Plan beneficiary was entitled to receive a distribution of Stiefel Laboratories, Inc stock in his or her account and each beneficiary had the option to hold the distributed shares of Employee Plan Stock or to sell those shares to the Company, during certain “put option periods.” For those terminated after March 31, 2008, the put option price for the first put option period was the price set by the 2008 Valuation of $16,469 per share. Plaintiffs allege that the 2008 valuation was substantially below its true value.
On or about December 9, 2008, Stiefel Laboratories, Inc terminated a number of its employees, including many senior employees and many of those terminated were participants in the Employee Plan.
One plaintiff says that he elected to take a distribution of his shares of Stiefel Laboratories, Inc, to be rolled over into his IRA. The Company bought his shares in February 2009 for $16,469 per share, paying 20% cash and a promissory note for the balance payable over 5 years.
However, then on April 24, 2009, Stiefel Laboratories, Inc notified its shareholders of a merger agreement with GlaxoSmithKline plc for approximately $3.6 billion. The price to be paid by GlaxoSmithKline plc to Stiefel Laboratories, Inc shareholders was $68,515.29 in cash for each share of stock (all Classes) with up to an additional $7,186.91 based on certain contingencies related to the merger, for a total of $75,702.20 per share.
The plaintiff alleges that the defendants terminated the employment of numerous employees in 2008 which they knew would cause many of those people to put their shares to the Company at the March 31, 2008, valuation and those defendants used these terminations to harvest the shares of the terminated employees at below their fair market value.
Those who are current or former participants in the Stiefel Laboratories, Inc. Employee Stock Bonus Plan, have certain options and should contact the Shareholders Foundation, Inc.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego