Receptos, Inc. and Celgene, Corp. Lawsuit Details – Celgene Corporation’s Proposed Buyout
Gilman Law LLP announced that a complaint on was filed on July 20, 2015 on behalf of a shareholder of Receptos, Inc. (NASDAQ: RCPT) seeking to block Celgene’s proposed $7.2 billion buyout and for breach of fiduciary duty by accepting an offer that undervalued the company’s stock when the company was about to have tremendous growth.The complaint explains, under the proposed buyout, Receptos agreed not to continue discussion with other potential buyers and give Celgene four business days to match a competing proposal. Receptos also agreed to pay Celgene a $240 million termination fee if the company sold to a higher bidder. The plaintiff states these points made it nearly impossible for Receptos to shop for possible higher bidders. The complaint went on to explain that the Receptos’ drug, Ozanimod-used to treat relapsing multiple sclerosis and irritable bowel disorder, is in late-stage trials which analyst estimate could be worth $5 billion. Considering this, Wedbush Securities raised its target price for Receptos stock from $211 to $408 in June, 2015. Under the proposed buyout, Celgene is offering $240 per share. The complaint alleges the shareholders will not be given a fair portion of Receptos’ assets.
We are encouraging shareholders who invested in Receptos Inc. and currently hold any of those shares to contact our office for a free consultation by submitting our free consultation form online or calling our office toll free at (888)-252-0048.
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About the Shareholder Rights Law Firm of Gilman Law LLP
The attorneys at Gilman Law have over 35 years of experience in securities class action law suits and have been involved in all major aspects of securities litigation. Our experienced securities attorneys focus on cases involving stock manipulation, securities fraud, investment fraud, shareholder rights violations, and securities arbitration.