Acceleron Pharma Sued in Connection with Merck Merger

On Wednesday a case was filed in the Southern District of New York by investor Susan Finger, on behalf of herself and other investors in Acceleron Pharma Inc., against the company and its board of directors. The case is regarding possible securities violations regarding the tender offer processing in the recent merger offer with Merck Sharp & Dohme Corp.

The Securities Exchange Act requires that certain disclosures be made when a tender offer for merger is made to a company being acquired by another entity. This information is supposed to include unbiased information containing full details as to benefits and risks that the merger offer represents to the parties that are participating in the tender offer as well as future financial projections regarding the new entities.

The plaintiffs argue that the board of directors has made offers of information, but the offers were incomplete and materially deficient for not including full information as to the risks involved with the transactions as well as to the sources used by the third party financial advisors to substantiate their financial valuations.

The plaintiff is suing for violations of the Securities Exchange Act and requests the injunctive relief of holding the tender offer open until full disclosure is made. The plaintiff is represented by Weiss Law.

A similar suit was filed recently, contesting the same transaction.