SAN DIEGO, July 29, 2019 /PRNewswire/ -- Shareholder rights law firm Johnson Fistel, LLP has launched an investigation into whether the board members of Genomic Health, Inc. (NASDAQ: GHDX) ("Genomic") breached their fiduciary duties in connection with the proposed sale of the Company to Exact Sciences Corp. ("Exact Sciences").
On July 29, 2019, Genomic announced that it had signed a definitive merger agreement with Exact Sciences. Under the terms of the agreement, for each share of Genomic Health common stock they own, Genomic Health stockholders will receive $72.00 ($27.50 in cash and $44.50 in shares of Exact Sciences stock); however, subject to a 10% collar centered on Exact Sciences' volume-weighted average price for the 45 trading days ended July 26, 2019. Following the news, in pre-market trading on July 29, 2019, Exact Sciences stock was trading down over 7%.
The investigation concerns whether the Genomic board failed to satisfy its duties to the Company shareholders, including whether the board adequately pursued alternatives to the acquisition and whether the board obtained the best price possible for Genomic shares of common stock. Nationally recognized Johnson Fistel is investigating whether the proposed deal represents adequate consideration, especially given analysts' projections for future earnings and revenue growth; also one Wall Street analyst has a $77.00 price target on the stock. The 52-week high for Genomic was $92.18.
If you are a shareholder of Genomic and believe the proposed buyout price is too low or you're interested in learning more about the investigation or your legal rights and remedies, please contact lead analyst Jim Baker ([email protected]) at 619-814-4471. If emailing, please include a phone number.
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About Johnson Fistel, LLP:
Johnson Fistel, LLP is a nationally recognized shareholder rights law firm with offices in California, New York, and Georgia. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit https://www.johnsonfistel.com. Attorney advertising. Past results do not guarantee future outcomes.
Johnson Fistel, LLP
Jim Baker, 619-814-4471
SOURCE Johnson Fistel, LLP