The Ademi Firm is investigating Generation Bio (Nasdaq: GBIO) for possible breaches of fiduciary duty and other violations of law in its recently announced transaction with XOMA Royalty Corporation.
In the transaction, Generation Bio shareholders will own $4.2913 per share in cash plus one contingent value right per share. The CVRs will entitle holders to receive portions of net cash above $29 million at closing, potential savings from Generation Bio’s Cambridge office lease obligations, and proceeds from Generation Bio’s existing license agreement with Moderna, which includes development and commercial milestones and royalties.
Generation Bio insiders will receive substantial benefits as part of change of control arrangements.
The transaction agreement unreasonably limits competing transactions for Generation Bio by imposing a significant penalty if Generation Bio accepts a competing bid. We are investigating the conduct of the Generation Bio board of directors, and whether they are fulfilling their fiduciary duties to all shareholders.
Join this Action