200 Stiefel Employees File Lawsuit As They Were Tricked into Selling With GSK Buyout
Posted Jul 19 2009 11:04pm
One of the not so good deals for employees of Stiefel and the lawsuit filed in federal court will determine the outcome, as many employees were terminated at the same time, causing the sale at a lesser value. BD
In April, GlaxoSmithKline (GSK) agreed to buy Stiefel for about $2.9B in cash, or $68,515 a share, plus about $400 million in debt, but a federal class-action lawsuit alleges that employees were tricked into selling their shares for about 1/4th the acquisition price, months ahead of the deal. The price tag that was lost is estimated at about $226M.
The suit alleges Stiefel also terminated “numerous employees in late 2008 for the purpose of causing those people to [sell] their shares to the company at the March 31, 2008, valuation.”
Stiefel repeatedly assured employees the company was not for sale, the suit says, and never imposed a ”blackout period” for buying back stock from employees prior to the announcement of the GlaxoSmithKline deal.