Two Osiris Therapeutics shareholders brought a class-action lawsuit against Osiris in an attempt to block the company's pending $660 million merger with Smith & Nephew.
What you should know:
1. The shareholders do not believe Osiris was properly valued, according to a court filing.
2. Osiris and Smith & Nephew entered into a merger agreement March 12. Smith & Nephew will purchase all outstanding shares at $19 per share, which Osiris claims is a 37 percent premium using the company's 90-day volume-weighted average stock price. The tender offer would commence April 2.
3. The lawsuit argues the shareholders are not receiving a fair buyout in relation to the "intrinsic value of the company."
4. The plaintiffs claim Osiris is worth $24 a share, based on the reported revenue growth of 15 percent to 18 percent.
5. The lawsuit requests allegedly omitted company documents to assess whether the proposed transaction is in shareholder's best interest.
To view the entire filing, click here.