AstraZeneca MedImmune acquisition faces lawsuit

The proposed acquisition of MedImmune by AstraZeneca could be under threat as a result of a class action lawsuit filed on behalf of shareholders in MedImmune. The lawsuit claims that the transaction has been drafted to benefit the senior executives in the two firms, rather than the shareholders of MedImmune.

It has claimed that company executives at both firms will gain extortionate benefits as a result of the deal, which will adversely affect the goal of maximising of stockholder value.

Filed by MedImmune shareholder Chris Larson of San Diego, the defendants in the lawsuit include founder and chairman of MedImmune Wayne Hockenmeyer and David Mott, president and chief executive of the company.

The lawsuit states: “Instead of attempting to obtain the highest value reasonably available for the company’s stockholders, defendants spent a substantial effort tailoring the acquisition to meet the specific needs of AstraZeneca.”

A spokesperson from AstraZeneca commented that the lawsuit did not directly affect the firm, as it is not named as a defendant in the action, though he added that the company was confident the transaction would go ahead as planned, with the US Securities and Exchange Commission MedImmune filing stating the lawsuit is without merit.

Last month, AstraZeneca announced that it had signed a merger agreement with MedImmune, with the firm bidding $58 (29.3 pounds) per share in a cash tender offer for the company.