X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.
Move over, Martha � ImClone Systems Incorporated isn’t the only biotech company taking heat for a stock deal. Two shareholders in Genzyme Corporation are trying to undo the company’s June 30 buyback of stock in two of its divisions. The investors, Rory Riggs and John Lewis, originally tried to block the transaction by filing suit in Manhattan federal district court. But after the buyback went ahead anyway, they amended their complaint to seek its recission and damages of about $40 million. Based in Cambridge, Massachusetts, Genzyme is a global biotech concern comprised of three separate units: Genzyme Biosurgery (formerly Biomatrix, Inc.), Genzyme Molecular Oncology, and Genzyme General. In May the company’s board called for a forced exchange of the Biosurgery and Oncology stocks for General stocks, and a consolidation of all the stocks under the name Genzyme General. But Riggs, former president of Biomatrix, and Lewis, president of Gardner Lewis Asset Management, balked at the deal. The two investors, who owned almost 2 million Biosurgery shares combined, claim that Genzyme intentionally withheld positive information about Biosurgery in order to buy back the stock at a depressed price. Genzyme reacquired the Biosurgery stock at $1.77 per share; Riggs and Lewis allege that its market value was $20 � $40 per share. As of press time Judge Louis Stanton had denied the plaintiffs’ request for a scheduling conference and had yet to rule on Genzyme’s motion to dismiss their lawsuit. Genzyme also faces a class action suit in Massachusetts state court alleging that its directors breached their fiduciary duty to all Biosurgery shareholders under the forced exchange. For plaintiffs Rory Riggs and John Lewis Boies, Schiller & Flexner (Armonk, New York): George Frampton, Jr., Philippe Selendy, Jonathan Sherman, and associates Kevin Anthony, Elizabeth Bowyer, Dara Burns, Paul Kunz, Frank Moore III, and Alanna Rutherford. (Frampton, Sherman, Anthony, Burns, Kunz, and Rutherford are in the firm’s Washington, D.C., office; Selendy, Bowyer, and Moore are in New York.) For defendants Genzyme Corporation et al. (Cambridge, Massachusetts) In-house: Senior vice president, general counsel, and chief patent counsel Thomas DesRosier, executive vice president � legal (Genzyme Molecular Oncology) Peter Wirth, vice president and deputy general counsel Robert Hesslein, and managing corporate counsel Gerald Quirk. Ropes & Gray (Boston): John Donovan, Jr., Paul Kinsella, William Sussman, and associates Robert Jones and Darcy Shearer. (Sussman is in the firm’s New York office.) Kinsella brought the client with him from his former firm, Palmer & Dodge.

This content has been archived. It is available exclusively through our partner LexisNexis®.

To view this content, please continue to Lexis Advance®.

Not a Lexis Advance® Subscriber? Subscribe Now

Why am I seeing this?

LexisNexis® is now the exclusive third party online distributor of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® customers will be able to access and use ALM's content by subscribing to the LexisNexis® services via Lexis Advance®. This includes content from the National Law Journal®, The American Lawyer®, Law Technology News®, The New York Law Journal® and Corporate Counsel®, as well as ALM's other newspapers, directories, legal treatises, published and unpublished court opinions, and other sources of legal information.

ALM's content plays a significant role in your work and research, and now through this alliance LexisNexis® will bring you access to an even more comprehensive collection of legal content.

For questions call 1-877-256-2472 or contact us at [email protected]

 
 

ALM Legal Publication Newsletters

Sign Up Today and Never Miss Another Story.

As part of your digital membership, you can sign up for an unlimited number of a wide range of complimentary newsletters. Visit your My Account page to make your selections. Get the timely legal news and critical analysis you cannot afford to miss. Tailored just for you. In your inbox. Every day.

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.