Stockholder-plaintiff Michael Zomber filed a complaint against BioDelivery Sciences International Inc., and the Chairman of the Board of the Company and several directors of the company. The complaint alleges that BioDelivery and the aforementioned individuals violated multiple sections of the Securities Exchange Act of 1934.
On February 14, 2022, BioDelivery announced that it entered into a definitive merger agreement for Collegium to purchase all outstanding shares of BioDelivery for $5.60 per share. According to the complaint, the press release regarding BioDelivery and Collegium omits and misrepresents the following information: BioDelivery’s financial projections, the financial analyses performed by the company advisor, and potential conflicts of interest involving the company’s financial advisor. The complaint also alleges that the failure to disclose the information omitted prevents the shareholders from understanding the financial analyses performed by the company’s advisor as shareholders cannot replicate managements underst anding of the company.
The plaintiff seeks the following relief: preliminary and permanent enjoining for the defendants from proceeding with the proposed transaction until the defendants disclose the omitted information regarding the company. the rescindment of the proposed transaction and awarding the defendant rescissory damages, the declaration the defendants violated various sections of the Exchange act, and an award of reasonable costs and expense for the plaintiff.
The plaintiff is represented by Halper Sadeh LLP.
