A total of seven cases have now been filed against PRA Health in federal court under securities-related case types, with the latest being filed Thursday. The suit, brought by investor Anthony Morgan, alleges that investors in PRA, a contract research organization (CRO) for pharmaceuticals, will be harmed if a proposed merger goes through, as “PRA Health insiders are the primary beneficiaries of the Proposed Transaction, not the Company’s public stockholders.”
The proposed acquirer of PRA Health is ICON, an Irish clinical research organization that “has grown significantly to become a leading global provider of outsourced development and commercialization services to pharmaceutical, biotechnology, medical device and government and public health organizations,” according to the plaintiff investor.
The plaintiff alleged that current PRA board members – individual defendants in the case – will benefit because have secured positions on the board of the post-merger company. They also purported that these insiders “stand to receive substantial cash severance payments in the form of golden parachute compensation” if they were to lose their position after the deal.
Additionally, Morgan alleged that the proxy statement describing the proposed transaction to shareholders was incomplete and invalid, because the document misled readers as to financial projects and conflicts of interest with financial advisors to the deal.T
The plaintiff in the most recent is alleging violations of the Securities and Exchange Act, and is represented by WeissLaw LLP.