NASDAQ:ARTC Investor Alert: Lawsuit filed to Halt Takeover of ArthroCare Corporation

The Shareholders Foundation announces that an investor who currently holds shares of ArthroCare Corporation (NASDAQ:ARTC) filed a lawsuit in effort to halt the proposed takeover of ArthroCare Corporation by Smith & Nephew plc for $48.25 per share.

Austin, TX based ArthroCare Corporation is a medical device company

Investors who purchased shares of ArthroCare Corporation (NASDAQ:ARTC) and currently hold any of those NASDAQ:ARTC shares have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 – 1554.

The investigation by a law firm concerns whether certain officers and directors of ArthroCare Corporation breached their fiduciary duties owed to NASDAQ:ARTC investors in connection with the proposed acquisition.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NASDAQ:ARTC stockholders arising out of the attempt to sell ArthroCare Corporation too cheaply via an unfair process to Smith & Nephew pl.

On February 3, 2014, Smith & Nephew plc (LSE: SN, NYSE: SNN) announced the execution of an agreement to acquire ArthroCare Corp. (NASDAQ: ARTC) for $48.25 per ArthroCare share in cash, a total consideration of approximately $1.7 billion and an enterprise value of $1.5 billion.

However, the plaintiff alleges that the $48.25-offer is too low and undervalues ArthroCare Corporation. Indeed, NASDAQ:ARTC shares jumped following the takeover news in the open market to as high as $49.36 per share and that at least one analyst has set the high target price at $60.00 per share. Furthermore, ArthroCare Corporation’s performance improved lately. For instance, ArthroCare Corporation reported that its annual Total Revenue rose from $354.88 million in 2011 to $368.45 million in 2012 and that its Net Loss of $4.32 million turned into a Net Income of $46.38 million in 2012. Shares of ArthroCare Corporation (NASDAQ:ARTC) grew from $24.60 per share in May 2012 to as high as $49.72 per share in early January 2014.

On February 10, 2014, NASDAQ:ARTC shares closed at $49.50 per share.

Those who are current investors in ArthroCare Corporation shares have certain options and should contact the Shareholders Foundation.

Contact:
Shareholders Foundation, Inc.
Joelle Day
3111 Camino Del Rio North – Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com

The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. The Shareholders Foundation, Inc. is not a law firm. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.
Posted by on Feb 2014. All trademarks acknowledged. Filed under Featured Press Release. Comments and Trackbacks closed. Follow responses: RSS 2.0

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