Volcano Owes Subsidiary's Shareholders $27M, Suit Says

Law360, New York (March 29, 2012, 5:41 PM EDT) -- Former shareholders in a medical device group bought out by Volcano Corp. in 2007 said Tuesday that the company's new owner has intentionally shorted them $27 million in deferred payments.

The merger agreement provided for a “significant amount of additional compensation” — up to $38 million — for CardioSpectra shareholders, to be distributed upon the achievement of four separate milestones over the next seven years, according to a complaint filed in California federal court.

The promise of that extra payout led the investors to accept a...
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Case Information

Case Title

Banas et al v. Volcano Corporation


Case Number

5:12-cv-01535

Court

California Northern

Nature of Suit

Contract: Other

Judge

Howard R. Lloyd

Date Filed

March 26, 2012

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