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PacBio Settles Lawsuits with Shareholders Over Illumina Acquisition

by | May 24, 2019 | Essential, Lab Compliance Advisor, Labs in Court-lca

Case: In November 2018, Illumina agreed to acquire Pacific Biosciences for $1.2 billion. Disappointed with the $8 per share acquisition price, PacBio shareholders filed five different class action lawsuits against the financially troubled long-read, high-resolution sequencing firm claiming that the board of directors deliberately concealed important financial information to secure shareholder support for the deal. On Feb. 1, 2019, PacBio announced that it had settled all five of the cases. Significance: Although the terms of the settlement weren’t disclosed, as part of the deal, PacBio has agreed to pay $300K worth of attorneys’ fees.

Case: In November 2018, Illumina agreed to acquire Pacific Biosciences for $1.2 billion. Disappointed with the $8 per share acquisition price, PacBio shareholders filed five different class action lawsuits against the financially troubled long-read, high-resolution sequencing firm claiming that the board of directors deliberately concealed important financial information to secure shareholder support for the deal. On Feb. 1, 2019, PacBio announced that it had settled all five of the cases.

Significance: Although the terms of the settlement weren’t disclosed, as part of the deal, PacBio has agreed to pay $300K worth of attorneys’ fees.

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