Cosmetic Co. Investor Sues To Halt $65M Takeover Deal

Law360, Wilmington (September 26, 2012, 5:01 PM EDT) -- A Physicians Formula Holdings Inc. investor launched a putative class action Wednesday over a planned $65 million takeover by private equity firm Swander Pace Capital, claiming the cosmetic company's board is shortchanging shareholders by not acting on a substantially better offer.

Filed in Delaware Chancery Court by shareholder L2 Opportunity Fund LP, the suit claims Physicians Formula's six directors have failed investors by providing ongoing support for Swander Pace's $4.25-per-share deal even though another bidder has offered to pay $4.90 a share.

The board could deem...
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