On Tuesday a case was filed in the Eastern District of New York by Kelly Cook against Adamas Pharmaceuticals and its board of directors. The case is regarding violations of the Securities and Exchange Act in regards to an acquisition offer; another case was filed last week.
In October the defendants and Supernus Pharmaceuticals, Inc. (Supernus) announced an acquisition offer for holders of Adamas. In connection with this acquisition offer, the defendant issued a financial projection, opinion of the financial advisor, and recommendation and reasoning of the board for supporting the acquisition offer.
However, the plaintiff argues on behalf of all affected shareholders that the information provided was incomplete and materially misleading with the omissions. Specifically, the plaintiff argues that the financial analysis provided was in a non Generally Accepted Accounting Principals (GAAP) format without the proper explanation or reconciliation to the most recent GAAP format report.
The plaintiff also accuses the defendants of providing incomplete information as to the supports for the information that was relied upon by the financial advisor, which would allow the shareholders to evaluate the opinion for bias or other omissions.
The plaintiff is suing for violations of the Securities and Exchange Act and is requesting that the offer be stayed until the missing information is provided for review of the shareholders. Plaintiff is represented by Halper Sadeh LLP.
