Allos Therapeutics, Inc.
Robbins Umeda LLP Announces an Investigation of Allos Therapeutics, Inc.
Robbins Umeda LLP, a shareholder rights litigation firm has commenced an investigation into possible breaches of fiduciary duty and other violations of state law by members of the board of directors of Allos Therapeutics, Inc. (NASDAQ: ALTH) in connection with their efforts to sell the company to AMAG Pharmaceuticals, Inc. (NASDAQ: AMAG).
On July 20, 2011, Allos announced it had entered into a definitive merger agreement under which AMAG Pharmaceuticals will acquire the company in an all-stock transaction. Under the terms of the agreement, Allos shareholders will receive only 0.1282 shares of AMAG Pharmaceuticals for each share of Allos they own. Based on AMAG Pharmaceuticals’ closing price on July 19, 2011, the figure represents the monetary equivalent of $2.44 per share. The transaction is expected to close as soon as the fourth quarter of 2011.
Robbins Umeda LLP’s investigation focuses on whether Allos’s board of directors is undertaking a fair process to obtain maximum value and adequately compensate shareholders in light of the company’s recent positive financial results. On May 10, 2011, the company reported that its net loss decreased to $15.2 million for the quarter, compared to $20.5 million in the same quarter of the prior year. Additionally, the company reported that one of its signature products, FOLOTYN, saw net sales increase 47% to $10.9 million, compared to just $7.4 million during the same quarter of the prior year. Additionally, and perhaps most demonstratively, several leading analysts have recently released target prices for Allos that value the company’s stock between $3.00 and $8.00 per share, considerably higher than the offer from AMAG Pharmaceuticals.
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