NEW YORK (GenomeWeb News) – A few law firms have announced that they are investigating Monogram Biosciences' board of directors for possible breach of fiduciary duty following the firm's announcement yesterday that it has signed a definitive agreement to be acquired by Laboratory Corporation of America for around $107 million.
The law firms — Levi & Korsinsky; Brodsky & Smith; and Howard G. Smith — suggested that the price of the acquisition may not be fair to Monogram's shareholders.
The deal calls for LabCorp to pay Monogram's shareholders $4.55 per share, which is a significant premium over the firm's closing price of $1.68 on the Nasdaq the day before the transaction was announced. However, Monogram's shares traded at the equivalent of $7.20 in August 2008, adjusting for a 6-for-1 reverse stock split in November, according to the law firms.
Monogram and LabCorp hope to close the deal in the third quarter.
Monogram officials did not return a call seeking comment by the tiem this article was published.