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Levi & Korsinsky, LLP
Levi & Korsinsky, LLP Investigates Breach of Fiduciary Duty by the Board of PharmaNet Development Group, Inc.
NEW YORK, Feb. 4, 2009 (GLOBE NEWSWIRE) -- Levi & Korsinsky ("L&K") is investigating breaches of fiduciary duty and other violations of state law by the board of directors of PharmaNet Development Group, Inc. ("PharmaNet" or the "Company") (Nasdaq:PDGI) arising out of their attempt to sell the Company to JLL Partners. Under the terms of the agreement, shareholders of PharmaNet will receive $5.00 cash for each share of PharmaNet they own for a total transaction value of approximately $100 million. The transaction is unfair, given that, among other things, the Company's shares traded above $7.00 per share as recently as October 2008, the Company has a book value of over $4.00 per share and at least one analyst had a price target of $6.00 per share before the transaction was announced. Also, the sales process the Company conducted was flawed given that, in contravention of their fiduciary duties to maximize shareholder value, the Company's Board agreed to a "no-solicitation" provision and also agreed to a $6 million termination fee which will ensure no superior offer will ever be forthcoming. The proposed acquisition is subject to customary conditions and regulatory approvals.