Valeant's $344M Obagi Buy Rips Off Investors, Suit Says

Law360, Wilmington (March 25, 2013, 8:14 PM EDT) -- A proposed shareholder class action filed Friday against Obagi Medical Products Inc. is seeking to block the $344 million buyout by Canadian drugmaker Valeant Pharmaceuticals International Inc., claiming the deal shortchanges investors and exploits the company.

The suit was filed in the Delaware Chancery Court by investor Michael Rubin on behalf of all Obagi shareholders and aims to stop a deal with Valeant announced Wednesday. In the action, Rubin alleges that investors ought to be getting more money than the $19.75-per-share cash payout the companies negotiated when...
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