Securities Lawsuit Investigation | Company: Allos Therapeutics, Inc. | For: Breaches of Fiduciary Duty, Failure to Disclose Information, Proposed Merger Undervalues Shares of Allos, False Statements, Stock Fraud
Gilman Law LLP, a leading national securities law firm, is actively investigating shareholder allegations that Allos Therapeutics, Inc. and its Board of Directors failed to disclose information and disseminated misleading statements in connection with the proposed acquisition of Allos by AMAG Pharmaceuticals, Inc. for approximately $260 million. Westminster, Colorado-based Allos is a biopharmaceutical company that engages in the development and commercialization of anti-cancer therapeutics. Allos trades on the Nasdaq exchange under the ticker ALTH.
If you are or were a stakeholder in Allos, who purchased shares during the period beginning July 20, 2011 through and including the closing of the proposed acquisition of Allos by AMAG, and believe that you were defrauded, Gilman Law will fight for you. For over 40 years, the lawyers at Gilman Law have been involved in all major aspects of securities fraud litigation. The firm handles cases involving stock manipulation, securities fraud, and shareholder rights violations.
You may also be entitled to a PSLRA (Private Securities Litigation Reform Act) claim. PSLRA claims need to be filed by no later than November 22, 2011. Under PSLRA, a plaintiff must file a claim for securities fraud within a 60 day time period and must also have ” the largest financial interest in the relief sought by the class” and “otherwise satisfies the requirements of Rule 23 of the Federal Rules of Civil Procedure.” PSLRA is one of five actions that can be taken.
Failure to Disclose Information All Material Information Concerning Proposed Sale of Allos to AMAG; Misleading Proxy Statements
The shareholder class action lawsuit against Allos alleges that the biopharmaceutical company failed to disclose all material information to shareholders concerning the proposed sale of Allos to AMAG. Additionally, the lawsuit alleges that Allos and AMAG disseminated false and misleading proxy statements in order to coerce shareholders into approving the acquisition.
The lawsuit alleges that the proposed acquisition significantly undervalued Allos and resulted from an unfair sales process that was designed to ensure that AMAG would be able to acquire Allos. On August 22, 2011, Allos issued a materially false and misleading proxy statement recommending that shareholders vote in favor of the proposed acquisition. In the proxy statement, Allos failed to disclose important details of the sales process, including conflicts of interest that corrupted the process, unfair consideration offered in the proposed acquisition and the actual intrinsic value of the Allos both on a stand-alone basis and as a merger partner for AMAG.
Proposed Merger Undervalues Shares of Allos
Under the terms of the merger agreement, Allos stockholders will receive a fixed ratio of 0.1282 shares of AMAG common stock for each share of Allos common stock held. Based on the prior day’s closing price of AMAG’s stock of $19.07, the deal values Allos stock at $2.44 a share. After the announcement of the proposed acquisition, the price of AMAG’s common stock fell to $13.58, bringing the value of Allos shares to $1.74. Plaintiffs are seeking injunctive relief on behalf of all shareholders of Allos.
Your Right To Recovery
Gilman Law LLP is one of the country’s premier national law firms that represents institutional and individual investors in class actions, complex securities and corporate governance litigation. The firm has been a champion of investor rights for over 40 years and has been recognized for its reputation for excellence by the courts. Gilman Law has extensive experience representing both individual and institutional investors in securities class action suits. Gilman Law has recovered over a billion dollars for its clients and can help you recover any losses that you have incurred as a result of fraudulent practices. For a free evaluation of your case or to obtain additional information, please fill out the form on the left or call Toll Free 1-888-252-0048.
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