Another Day, Another Merger, Another Shareholder Lawsuit
By Ben Hallman
March 16, 2009
We've previously noted that every time there's a big takeover, it seems as though there's an accompanying class action in which stockholders accuse the target of failing to maximize the price per share. We're about ready to remove the qualifying "seems" from that observation. Last week, about 12 seconds after Merck & Co announced it was acquiring Schering-Plough for $41 billion, Schering-Plough shareholders filed a class action in New Jersey federal district court, claiming the company breached its fiduciary duties to investors. No word yet on who's representing Schering.The shareholder class action was filed by plaintiffs lawyers at Carella, Byrne, Bain, Gilfillan, Cecchi, Stewart & Olstein and Pomerantz Haudek Block Grossman & Gross. We are sure they won't be the only entrants in the eventual contest for lead counsel status; in fact, a notice at Bernstein Liebhard's Web site suggests they might soon get in on the action, too. Anyone else want to toss a hat in the ring?
Meanwhile, Bloomberg broke the news Monday that Schering-Plough had agreed to pay $165 million to settle a class action that claimed the company defrauded investors by failing to disclose manufacturing flaws blocking approval of the allergy drug Clarinex. (The company apparently reached the deal a few weeks ago but it wasn't previously announced.) Barrack, Rodos & Bacine is lead plaintiffs counsel. The docket lists Lowenstein Sandler as Schering's defense counsel.
