Cancer treatment firm US Oncology said it’s the subject of two purported class action lawsuits related to its planned merger with an affiliate of shareholder Welsh, Carson, Anderson, and Stowe IX.
The Houston-based firm had announced its intention to go private earlier this week after accepting the buyout offer from its largest shareholder. The complaints, which were filed in the Delaware Court of Chancery by "purported" stockholders of the company on behalf of all similarly situated stockholders, allege, among other things, that the defendants have breached their fiduciary duties to shareholders, US Oncology said.
They also allege that the consideration offered in the merger is inadequate and the result of unfair dealing. The complaints seek an injunction against the proposed transaction, or if it consummated, rescinding the transaction, as well as money damages, attorneys' fees, expenses and other relief, US Oncology said.
The lawsuits name the company and each of its directors as defendants, and in one of the suits, Welsh, Carson, Anderson and Stowe IX is also named as a defendant. US Oncology said it believes that a third lawsuit has been filed, and additional lawsuits could be filed in the future. The company said it believes the lawsuits are without merit and that it intends to vigorously defend them.
By AuntMinnie.com staff writersMarch 25, 2004
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