DJO, ReAble merger hits lawsuit snag:
This article was originally published in Clinica
Executive Summary
A class action lawsuit claiming that DJO shareholders have been left high and dry by the company's proposed merger with ReAble Therapeutics could scupper the $1.6bn bid. The complaint alleges that the deal, which has already received the go-ahead from the US Federal Trade Commission (see Clinica No 1270, p 13), was inadequately priced and breached DJO's fiduciary duty to seek a transaction that would provide shareholders with optimum value. The action calls for an injunction on the merger and monetary damages. DJO said the lawsuit is without merit and will vigorously oppose it. However, the Vista, California company added that it expects further similar lawsuits to be filed.