Actavis, the world’s second-largest generic-drug maker by market value, announced on Feb. 18 that it would buy New York-based Forest Laboratories for about $25 billion in a deal that will transform it into a developer of brand-name drugs.
Shareholder Eleanor Turberg sued Forest Laboratories and its board in New York State Supreme Court in Manhattan today. She asks for class-action status and seeks to block the company from completing the transaction.
“The intrinsic value of the company’s common stock is materially in excess of the amount offered for those securities in the proposed transaction given the company’s prospects for future growth and earnings,” Turberg said in the complaint.
Turberg said the payout to investors “falls short of compensating” them for “a strategic merger in which Actavis anticipates achieving over $1 billion in operating and tax synergies.”
A telephone message left at the company seeking comment on the lawsuit wasn’t immediately returned.
The case is Turberg v. Forest Laboratories Inc., 650579/2014, New York State Supreme Court, New York County (Manhattan).
To contact the reporter on this story: Chris Dolmetsch in New York State Supreme Court in Manhattan at
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