Caris Employees Get $16.3M After Co. Sharply Devalued Stock
Law360, Wilmington (July 28, 2015, 10:50 PM EDT) -- A Delaware judge said Tuesday that Caris Life Sciences Inc. purposely low-balled its businesses' value by $175 million before a 2011 spinoff and merger, shortchanging a class of employee stockholders by $16.3 million.
A former Caris employee had alleged in 2012 that the cancer-diagnostics company shortchanged employees when it repurchased their stock options before merging with Japan-based laboratory testing company Miraca Holdings Inc.
The $725 million merger involved spinning off two business units, revenue-earning TargetNow and development-stage Carisome. The official valuation used in the spinoff was $65 million for the two companies combined.
But in Tuesday's opinion in the Delaware Chancery Court suit,...
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