Wednesday, February 12, 2014

Lawsuit filed to Halt Takeover of ArthroCare Corporation by S&N


The Shareholders Foundation announces that an investor who currently holds shares of ArthroCare Corp. (NASDAQ:ARTC) filed a lawsuit in effort to halt the proposed takeover of ArthroCare Corporation by Smith & Nephew plc for $48.25 per share.
Austin, TX based ArthroCare Corporation is a medical device company
Investors who purchased shares of ArthroCare Corporation (NASDAQ:ARTC) and currently hold any of those NASDAQ:ARTC shares have certain options and should contact the Shareholders Foundation.
The investigation by a law firm concerns whether certain officers and directors of ArthroCare Corporation breached their fiduciary duties owed to NASDAQ:ARTC investors in connection with the proposed acquisition. The plaintiff alleges that the defendants breached their fiduciary duties owed to NASDAQ:ARTC stockholders arising out of the attempt to sell ArthroCare Corporation too cheaply via an unfair process to Smith & Nephew pl.

On February 3, 2014, Smith & Nephew plc (LSE: SN, NYSE: SNN) announced the execution of an agreement to acquire ArthroCare Corp. (NASDAQ: ARTC) for $48.25 per ArthroCare share in cash, a total consideration of approximately $1.7 billion and an enterprise value of $1.5 billion.
However, the plaintiff alleges that the $48.25-offer is too low and undervalues ArthroCare Corporation. Indeed, NASDAQ:ARTC shares jumped following the takeover news in the open market to as high as $49.36 per share and that at least one analyst has set the high target price at $60.00 per share. Furthermore, ArthroCare Corporation’s performance improved lately. For instance, ArthroCare Corporation reported that its annual Total Revenue rose from $354.88 million in 2011 to $368.45 million in 2012 and that its Net Loss of $4.32 million turned into a Net Income of $46.38 million in 2012. Shares of ArthroCare Corporation (NASDAQ:ARTC) grew from $24.60 per share in May 2012 to as high as $49.72 per share in early January 2014.
On February 10, 2014, NASDAQ:ARTC shares closed at $49.50 per share.
Those who are current investors in ArthroCare Corporation shares have certain options and should contact the Shareholders Foundation.
Published at - Empowered News

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