Sumitomo Sued Over Skadden’s Alleged Conflicts in Myovant Merger

Myovant Sciences Ltd., its leadership, and Sumitomo Pharma America Inc. allegedly misled investors during their merger, stating in a proxy that lawyers at Skadden, Arps, Slate, Meagher & Flom LLP who negotiated the deal had no conflicts of interest, a shareholder suit says.

This statement was allegedly false, because Skadden was simultaneously representing Sumitomo’s banking division and other affiliates of the company’s pharmaceutical and chemical businesses. Myovant failed to disclose those conflicts to minority shareholders when encouraging them to approve the deal, according to the suit filed Thursday in US District Court for the Southern District of New York. ...