Levi & Korsinsky, LLP Investigates Possible Breach of Fiduciary Duty by the Board of Osteotech, Inc.
Levi & Korsinsky is investigating the Board of Directors of Osteotech, Inc. (“Osteotech” or the “Company”)(Nasdaq: OSTE) for possible breaches of fiduciary duty and other violations of state law.
[USPRwire, Wed Aug 18 2010] Levi & Korsinsky is investigating the Board of Directors of Osteotech, Inc. (“Osteotech” or the “Company”)(Nasdaq: OSTE) for possible breaches of fiduciary duty and other violations of state law in connection with the proposed transaction in which Medtronic, Inc. (“Medtronic”)(NYSE:MDT) will acquire Osteotech for $6.50 per share in cash. The total value of the transaction is expected to be approximately $123 million.
The investigation concerns whether the Osteotech’s Board of Directors breached their fiduciary duties to stockholders by failing to adequately shop the Company before entering into this transaction and whether Medtronic is underpaying for Osteotech shares, thus unlawfully harming Osteotech’s stockholders. In particular, the Company is in the wake of a potential proxy fight with a dissident shareholder who owns 23% of Osteotech’s common stock, citing the Company's recent beaten-down stock and erosion of the Company's results due to the Company’s inept Board. The proposed transaction is opportunistic in that Medtronic is proposing to acquire the Company at a time when the Company is experiencing a temporary decline. The investigation also focuses on whether Osteotech’s Board agreed to this transaction as a defensive measure in connection with the potential proxy fight.
If you own common stock in Osteotech and wish to obtain additional information, please contact Joseph E. Levi, Esq. either via email at email@example.com or by telephone at (212) 363-7500 or visit http://www.zlk.com/osteotech-oste.html.
Levi & Korsinsky has expertise in prosecuting investor securities litigation and extensive experience in actions involving financial fraud and represents investors throughout the nation, concentrating its practice in securities and shareholder litigation.
Contact: Levi & Korsinsky, LLP, Joseph Levi, Esq., Eduard Korsinsky, Esq., 30 Broad Street - 15th Floor, New York, NY 10004
Tel: (212) 363-7500, Fax: (212) 363-7171, www.zlk.com
Levi & Korsinsky, LLP
30 Broad Street, 15th Floor