Allos Therapeutics, Inc. Securities Lawsuit Investigation

Securities Lawsuit Investigation | Company: Allos Therapeutics, Inc. | For:
Breaches of Fiduciary Duty, Failure to Disclose Information, Proposed Merger Undervalues Shares of Allos

Gilman Law LLP, a leading national securities law firm, is actively investigating shareholder allegations that Allos Therapeutics, Inc. (“Allos”) and its Board of Directors breached their fiduciary duty to shareholders and violated other state and federal laws arising out of the proposed acquisition of the Company to AMAG Pharmaceuticals, Inc. (“AMAG”) for approximately $260 million. Allos is a biopharmaceutical company that engages in the development and commercialization of anti-cancer therapeutics.

For over 30 years, the lawyers at Gilman Law have been involved in all major aspects of securities fraud litigation. The firm focuses on cases involving mergers & acquisitions, stock manipulation, securities fraud, and shareholder rights violations. If you held shares of common stock of Allos Therapeutics, Inc. (NASDAQ: ALTH), during the period beginning July 20, 2011 through and including the closing of the proposed acquisition of Allos by AMAG, you may contact Gilman Law LLP, by no later than November 22, 2011 to discuss your rights.

Breaches of Fiduciary Duty

The shareholder class action suit alleges that Allos’ Board of Directors breached their fiduciary duty to shareholders by failing to disclose all material information to shareholders concerning the proposed sale of Allos to AMAG. Allos and AMAG aided and abetting these breaches by disseminating false and misleading proxy statements.

Failure to Disclose Information

A class action lawsuit has been commenced in the United States District Court for the District of Colorado on behalf of a proposed class of Allos shareholders. The Complaint alleges that the proposed acquisition significantly undervalued Allos and was a result of an unfair sales process that was designed to ensure only AMAG had the opportunity to purchase Allos. On August 22, 2011, Allos issued a materially false and misleading proxy statement recommending that shareholders vote in favor of the proposed acquisition but failed to disclose material information concerning the unfair sales process, conflicts of interest that corrupted the sales process, the unfair consideration offered in the proposed acquisition and the actual intrinsic value of the Company on a stand-alone basis and as a merger partner for AMAG.

Proposed Merger Undervalues Shares of Allos

Under the terms of the Merger Agreement, Allos stockholders will receive a fixed ratio of 0.1282 shares of AMAG common stock for each shares of Allos common stock held. Based on AMAG’s prior closing price of $19.07, the deal values Allos stock at $2.44 a share. After the announcement of the proposed acquisition, the price of common stock of AMAG fell to $13.58, bringing the value of Allos shares to $1.74. Plaintiffs are seeking injunctive relief on behalf of all shareholders of Allos common stock during the period beginning July 20, 2011 through and including the closing of the proposed acquisition of Allos by AMAG.

Gilman Law has extensive experience representing both individual and institutional investors in securities class action suits. Gilman Law has recovered over a billion dollars for its clients and can help you recover any losses that you might incur as a result of Allos’ fraudulent practices. For a free evaluation of your case or to obtain additional information, please fill out the form on the left or CALL TOLL FREE (888) 252-0048.