NEW YORK (GenomeWeb News) – Two lawsuits have been filed against Complete Genomics and BGI alleging a breach of fiduciary duties stemming from BGI's planned $117.6 million purchase of Complete Genomics.
One case, Budy Liauw v. Complete Genomics, was filed in the Superior Court for the State of California in the County of Santa Clara on Sept. 25. The other case, Irwin Hyman v. Complete Genomics, was filed in the Court of Chancery of the State of Delaware on Sept. 26. Both cases name the individual directors of Complete Genomics, as well as the company and BGI, as defendants.
The lawsuits claim that BGI's bid for Complete Genomics for $3.15 per share undervalues the company and shortchanges shareholders. In the meantime, "certain of the Company's named executive officers and board members will receive significant compensation in the form of severance payments and accelerated vesting of stock options and restricted stock – benefits that are not otherwise available to" shareholders, Liauw said in his complaint.
Both lawsuits seek class action status and ask the court for a preliminary and permanent injunction against completion of the deal.