Paratek Pharmaceuticals Inc.'s senior leadership prevailed Wednesday over investor claims that they accepted a lower price in its $462 million sale to Novo Holdings A/S and Gurnet Point Capital LLC in order to increase incentive payments for themselves.
The February 2024 proposed class action claimed Paratek’s CEO, chairman, and three other executives doubled their own incentive payments by delaying the deal until September 2023. The Delaware Chancery Court found it “undisputed” that the majority of the board that approved the transaction was disinterested and independent from the leadership, according to a 73-page opinion.
The investors’ “fraud-on-the-board theory is novel,” ...
Learn more about Bloomberg Law or Log In to keep reading:
See Breaking News in Context
Bloomberg Law provides trusted coverage of current events enhanced with legal analysis.
Already a subscriber?
Log in to keep reading or access research tools and resources.