Kensey Nash Corp., a maker of absorbable cardiac medical devices, was sued by a stockholder contending investors will be shortchanged in a planned $360 million bid from Royal DSM NA.
Directors of Exton, Pennsylvania-based Kensey Nash have a duty to get the best price for the shares and haven’t complied with that responsibility, investor Hilary Coyne said in court papers made public today in Delaware Chancery Court in Wilmington.
“The buyout is a product of a flawed process that is designed to ensure the sale of Kensey Nash to DSM on terms preferential to DSM, but detrimental” to shareholders, lawyers for Coyne said in court papers.
DSM, based in Heerlen, Netherlands, agreed to buy Kensey Nash May 3 to expand in the market for medical-devices made of proteins and synthetic polymers. The buyout price of $38.50 a share was a 33 percent premium at the time.
In the lawsuit, Coyne asks a judge to halt the proposed sale and to certify the case as a class-action, or group, lawsuit to represent all shareholders.
Joseph Kaufmann, chief executive officer of Kensey Nash, didn’t immediately respond to an e-mail seeking comment on the lawsuit.
Kensey Nash rose 3 cents to $38.47 in Nasdaq stock market trading at 11:38 a.m. in New York.
The case is Coyne v. Kensey Nash, CA7508, Delaware Chancery Court (Wilmington).