Chinook Therapeutics, Inc.

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Ademi LLP is investigating Chinook (Nasdaq: PRTK) for possible breaches of fiduciary duty and other violations of law in its transaction with Novartis.

Chinook public stockholders are expected to receive only $40 per share in cash, or a total of $3.2 billion. In addition, Chinook shareholders will receive contingent value rights (CVRs) providing for payment of up to $4 per share upon the achievement of certain future regulatory milestones with respect to Chinook’s lead product candidate, atrasentan. The transaction agreement unreasonably limits competing bids for Chinook by imposing a significant penalty if Chinook accepts a superior bid. Chinook insiders will receive substantial benefits as part of change of control arrangements.

We are investigating the conduct of Chinook’s board of directors, and whether they are (i) fulfilling their fiduciary duties to all shareholders, and (ii) obtaining a fair and reasonable price for Chinook.