Robbins Umeda LLP Announces an Investigation of Par Pharmaceutical Companies, Inc.
Robbins Umeda LLP has commenced an investigation into possible breaches of fiduciary duty and other violations of the law by members of the board of directors of Par Pharmaceutical Companies, Inc. (NYSE: PRX) in connection with their efforts to sell the company to an affiliate of TPG Capital. Concerned shareholders who would like more information about their rights and potential remedies can complete the form below and we will contact you directly. You can also contact attorney Gregory E. Del Gaizo at (800) 350-6003.
On July 16, 2012, Par announced that it had entered into a definitive merger agreement to be acquired by an affiliate of TPG Capital. According to the terms of the deal, TPG Capital will acquire all of the outstanding shares of Par through an all-cash transaction. Pursuant to the agreement, Par shareholders will receive $50.00 in cash for each share of the company they own. The transaction is expected to close during 2012.
Robbins Umeda LLP’s investigation focuses on whether the board of directors at Par is undertaking a fair process to obtain maximum value and adequately compensate Par shareholders. At least one market analyst has released a target price for Par that values the company’s stock at $58.00 per share, considerably higher than the value currently being offered by TPG Capital as a part of the proposed transaction. Furthermore, on May 8, 2012, Par reported revenue and earnings per share that exceeded analyst projections and represented substantial increases over 2011 figures. Specifically, Par reported total revenue of $271.5 million for the first quarter of 2012, a 16.5% increase over the $233 million in revenue reported during the same quarter of the previous fiscal year. Additionally, the company reported earnings per share of $0.80, beating consensus estimates.
Given these impressive financial results and recent target prices for Par, Robbins Umeda LLP is examining the board’s decision to sell Par rather than allow shareholders to continue to participate in the Company’s continued success and future growth prospects.
Robbins Umeda LLP attorneys highlight that Par shareholders have the option to file a class action lawsuit against the company to secure the best possible price for the company’s shareholders and the disclosure of material information to shareholders so they can vote on the transaction in an informed manner.
Robbins Umeda LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.