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Cornerstone Therapeutics, Inc. (NASDAQ:CRTX) Investor Files Lawsuit In Efort To Halt The Proposed Acquisition

  • If you purchased shares of the Cornerstone Therapeutics, Inc. (NASDAQ:CRTX) and currently hold any of those NASDAQ:CRTX shares, you have certain options and you should contact the Shareholders Foundation, Inc.

  • To have your information reviewed for options and to receive notifications about this case, please send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.

Lawsuit Overview

Company
Cornerstone Therapeutics, Inc.
Security
NASDAQ: CRTX

Case Name
Cornerstone Therapeutics Deal Case 09/20/2013
Type of Lawsuit
Mergers and Acquisition
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Summary

September 23, 2013 (Shareholders Foundation) - An investor, who currently hold shares of Cornerstone Therapeutics, Inc. (NASDAQ:CRTX) filed a lawsuit in effort to halt the proposed takeover of Cornerstone Therapeutics, Inc. by Chiesi Farmaceutici SpA for $9.50 per NASDAQ:CRTX share.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NASDAQ:CRTX stockholders arising out of the attempt to sell Cornerstone Therapeutics Inc too cheaply via an unfair process to Chiesi Farmaceutici SpA.

On Feb 20, 2013, Cornerstone Therapeutics Inc. announced that its Board of Directors has received a letter from its majority Stockholder Chiesi Farmaceutici SpA. In that letter Chiesi Farmaceutici SpA, which owns approximately 60% of the outstanding shares of the Cornerstone Therapeutics Inc. (NASDAQ: CRTX) common stock, made a proposal, subject to certain conditions, to acquire the shares of Cornerstone Therapeutics Inc. (NASDAQ: CRTX) common stock that it does not already own for a cash purchase price of between $6.40 and $6.70 per share. Then on Sep 16, 2013, Chiesi Farmaceutici S.p.A. and Cornerstone Therapeutics Inc. announced that the special committee of the Cornerstone Therapeutics Inc Board of Directors, as well as the boards of directors of both companies, have approved a definitive merger agreement under which Chiesi Farmaceutici S.p.A. will acquire all of the outstanding common shares of Cornerstone Therapeutics Inc for $9.50 per share in cash.

However, the plaintiff claims that the 9-50-offer is too low and undervalues Cornerstone Therapeutics.

Indeed, at least one analyst has set the target price for NASDAQ:CRTX shares at $14.00. in addition, Cornerstone Therapeutics’ financial performance improved. In fact, it reported that its annual Total revenue rose from $101.42 million in 2011 to $116.08 million in 2012. Shares of Cornerstone Therapeutics, Inc. (NASDAQ:CRTX) reached $10.25 per share on June 6, 2013, respectively June 10, 2013.
Furthermore, the plaintiff says that the process is also unfair to NASDAQ:CRTX investors. For instance, Chiesi Farmaceutici S.p.A. currently owns 58% of Cornerstone Therapeutics' outstanding common shares.

On September 23, 2013, NASDAQ:CRTX shares closed at $9.38 per share.