Two class-action lawsuits have been filed challenging the acquisition of MRI components provider Intermagnetics General of Latham, NY, by multimodality vendor Philips Medical Systems of Andover, MA.
The suits challenge the $1.3 billion agreement by claiming that the directors of Intermagnetics breached their fiduciary duties by failing to publicly announce an open bidding process and by failing to seek other offers to buy the company. Intermagnetics directors also failed to provide full disclosure of certain material financial information, the lawsuit claims.
The suits were filed in the Supreme Court of the State of New York, Albany County, on June 16 and June 20, respectively. Intermagnetics said the lawsuits are without merit, adding that it will contest the allegations vigorously.
By AuntMinnie.com staff writers
July 31, 2006
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