We are investigating whether the directors of Cardiovascular Systems, Inc. (Nasdaq: CSII) (“CSII”) acted in the best interests of CSII shareholders in approving the sale of CSII to Abbott Laboratories (“Abbott”) for $20.00 per share in cash.
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Why is there an investigation?
On February 9, 2023, CSII announced that it had agreed to be acquired by Abbott for $20.00 per share in cash. The agreement has been approved by the CSII board of directors (“Board”).
“We are investigating whether CSII’s Board acted in the best interests of CSII shareholders in approving the sale,” explained Joshua Fruchter, one of the law firm’s name partners. “This includes whether the acquisition price adequately compensates CSII shareholders, and whether all material information regarding the transaction has been fully disclosed.”
Notably, according to an analysis of Wall Street price targets for CSII in the last 90 days published on Seeking Alpha, there is an average target price of $21.20 per share, and a high price target of $30.00 per share. Both are above the deal price, which suggests Wall Street analysts think the deal price is too low.
Additionally, the deal price is below the 52-week high of $23.34 per share at which CSII closed on April 1, 2022, which suggests that Abbott may be taking advantage of the temporary market downturn to acquire CSII at an unfair price.