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WEISSLAW LLP: The Spectranetics Corporation Acquisition May Not Be in the Best Interests of SPNC Shareholders

PHG

PR Newswire

NEW YORK, June 29, 2017 /PRNewswire/ -- WeissLaw LLP is investigating possible breaches of fiduciary duty and other violations of law by the Board of Directors of The Spectranetics Corporation ("SPNC" or the "Company") (NASDAQ: SPNC) in connection with the proposed acquisition of the Company by Dutch healthcare company Royal Philips ("Philips") (NYSE: PHG).  Under the terms of the acquisition agreement, the Company's shareholders will receive $38.50 in cash for each SPNC share they own.

WeissLaw is investigating whether SPNC's Board acted to maximize shareholder value prior to entering into the agreement.  Notably, SPNC reported double digit growth in revenue and gross profit in the first quarter of fiscal year 2017, marking the seventh consecutive period the Company beat its quarterly financial outlook. 

Further, the acquisition is a lopsided agreement, heavily favoring the interests of Philips and its shareholders at the expense of SPNC shareholders.  Philips stands to gain innumerable benefits from this deal, namely:

  • the expansion and strengthening of Philips's portfolio to include SPNC's collection of high growth-rate and highly competitive devices;
  • the improvement of Philips's market position in the healthcare industry; and
  • the strengthening of Philips's growth strategy as it anticipates the deal to be immediately accretive to profit and revenue. 

Finally, the acquisition will give Philips access to SPNC's highly anticipated Stellarex, which is expected to obtain FDA approval this year. 

Given these facts, WeissLaw is investigating whether SPNC's Board acted in the best interests of SPNC's public shareholders to maximize shareholder value prior to entering into the agreement.  If you own SPNC shares and would like more information about your rights or our investigation, or if you have information to share with us, please contact Joshua Rubin by telephone at (888) 593-4771 or by email at stockinfo@weisslawllp.com .   

WeissLaw LLP has litigated hundreds of stockholder class and derivative actions for violations of corporate and fiduciary duties.  We have recovered over a billion dollars for defrauded clients and obtained important corporate governance relief in many of these cases.  If you have information or would like legal advice concerning possible corporate wrongdoing (including insider trading, waste of corporate assets, accounting fraud, or materially misleading information), consumer fraud (including false advertising, defective products, or other deceptive business practices), or anti-trust violations, please email us at stockinfo@weisslawllp.com or fill out the form on our website, http://www.weisslawllp.com/the-spectranetics-corporation/

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/weisslaw-llp-the-spectranetics-corporation-acquisition-may-not-be-in-the-best-interests-of-spnc-shareholders-300482002.html

SOURCE WeissLaw LLP