After nearly a decade of litigation, former minority shareholders of Caraco Pharmaceutical Laboratories, Ltd. receive $3.35 million in additional merger consideration.
In December 2010, Kessler Topaz challenged Caraco’s $50 million acquisition by its controlling shareholder Sun Pharmaceutical to squeeze out Caraco’s minority shareholders. The transaction, which Sun Pharmaceutical voted through itself, was completed in July 2011. Evidence uncovered by Kessler Topaz throughout the litigation demonstrated that conflicted directors on Caraco’s board conspired with the controlling shareholder to take actions to depress Caraco’s stock price, allowing Sun to squeeze-out minority shareholders at an unfairly low price. After years of hard-fought litigation, including two separate trips to the Michigan Court of Appeals to reverse dismissals of the litigation, Kessler Topaz settled the class’ claims for a $3.35 million payment to Caraco’s former minority shareholders. This payment vindicates the rights of Caraco’s minority shareholders and demonstrates Kessler Topaz’s steadfast commitment to protect shareholders’ rights regardless of how long it takes.