Loxo Oncology Hit With Shareholder Suit Over Eli Lilly Buyout

A Loxo Oncology Inc. shareholder wants a court to pump the brakes on the company’s proposed acquisition by Eli Lilly & Co.

The solicitation statement filed with the Securities and Exchange Commission was “materially incomplete and misleading,” she says.

Lilly plans to shell out $8 billion to acquire Loxo’s outstanding common stock and merge the biopharmaceutical company with one of its subsidiaries.

But that offer is too low, undervaluing Loxo’s future value, Elaine Wang alleges in her complaint, filed Jan. 23 in the U.S. District Court for the District of Delaware.

Loxo didn’t immediately respond to Bloomberg Law’s request for ...