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Inspire Pharmaceuticals, Inc. Directors Sued By Investor In Effort To Block Takeover

  • If you purchased Inspire Pharmaceuticals, Inc. (NASDAQ:ISPH) and currently continue to hold those NASDAQ:ISPH 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
Security
NASDAQ: ISPH

Case Name
Inspire Pharmaceuticals Deal Case 04/22/2011
Type of Lawsuit
Mergers and Acquisition
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Summary

An investor in Inspire Pharmaceuticals, Inc. (NASDAQ:ISPH) shares filed a lawsuit in effort to block the proposed takeover of Inspire Pharmaceuticals, Inc by Merck.
According to the complaint the plaintiff alleges that the defendants breached their fiduciary duties in connection the proposed takeover.

On Tuesday, April 5, 201, Inspire Pharmaceuticals, Inc. (NASDAQ: ISPH) and Merck (NYSE:MRK) announced that they have entered into an agreement under which Merck will acquire Inspire Pharmaceuticals, Inc in a transaction that has a total cash value of approximately $430 million. Under the terms of the proposed takeover, Merck, through a subsidiary, will commence a tender offer for all outstanding common stock of Inspire Pharmaceuticals, Inc at a price of $5.00 per ISPH share in cash. Inspire Pharmaceuticals, Inc.said the offer represents a 26% premium to the closing price of Inspire Pharmaceuticals' common stock on April 4, 2011.

In response to the takeover announcement ISPH shares increased from slightly under $4 on April 4, 2011 to $4.97 on April 5.

However the plaintiff alleges the offer undervalues the company. In fact, shares of Inspire Pharmaceuticals, Inc. traded as high as $8.08 per share in December 2010. In addition, at least on analyst has set a target price of $10.00 per share for Inspire Pharmaceuticals stock. Furthermore Inspire Pharmaceuticals financially performed well for its investors. Inspire Pharmaceuticals’ 12months Total Revenue rose from $48.66million in 2007 to $106.40million in 2010.