More News

Stockholder Lawsuit Against PPD Sale May Pose Minimal Threat

By Jenny Callison, posted Oct 14, 2011

Although a PPD, Inc., stockholder has filed a class-action lawsuit aimed at blocking the sale of the company to two private equity firms, the threat to the sale may be minimal.

California resident and stockholder Mark Hendriks filed his suit October 11 in the U.S. District Court for Eastern North Carolina. The lawsuit alleges that the offered share price of $33.25 by The Carlyle Group and Hellman & Friedman undervalues the company, and that officers and directors of PPD breached their fiduciary duties in several ways.

The emergence of such lawsuits frequently happens in cases where companies are being taken private, but that does not mean that this one will be successful, said Edward Graham, professor of finance at UNC Wilmington.

“My expectation is that no such settlement is forthcoming, as is typically the case, and that the PPD deal is not colored by such an undervaluation,” he said.

“Why would the board agree to a price that left a lot of their money on the table?” Graham added. “In a case where the board owns little stock in the company, the lawyer might have a case to build, but in the PPD case, where the dealmakers all have skin – lots – in the game, that is likely not the case.”

When the PPD sale was announced on October 3, several law firms posted web announcements inviting company stockholders to contact them if they believed the offered buy-out share price was not a fair one.

Ico insights


Jc300 dsc 2735

The Great Reflection

JC Lyle - Wilmington Area Rebuilding Ministry
Mel profilephoto

Influencer Marketing: Tap Into Your Audience On A Budget

Mel Beasley - Wide Open Tech
Jeremytomlinson enfuse headshot

3 Unbreakable Rules Of Business Technology

Jeremy Tomlinson - Enfuse Technology Solutions

Trending News

Wrightsville Beach Oceanfront Home Sale Tops May Record

Cece Nunn - Dec 1, 2021

Chamber Releases Economic Scorecard on Wilmington Region 

Johanna F. Still - Dec 1, 2021

Development Proposal Plants Commercial Space On Farm Land

Cece Nunn - Dec 3, 2021

Soup's On At New Asian Restaurant In Porters Neck

Jenny Callison - Dec 1, 2021

With Listening Sessions Complete, New Hanover Endowment Looks Ahead

Johanna F. Still - Dec 2, 2021

In The Current Issue

Seniors Find Health, Friends In Fitness

If there’s one word to describe the members of Sandy Sneakers, an exercise group for seniors, it’s “vivacious.” They have the energy of a 30...

Employers Monitor Vaccine Rules

With judicial review underway on the Biden administration’s vaccination mandate for businesses with 100 or more employees, leading employers...

A Look Back At Banking In 2021

Almost without exception, banks in the Wilmington market showed steady deposit growth as of the most recent FDIC Market Share Report....

Book On Business

The 2021 WilmingtonBiz: Book on Business is an annual publication showcasing the Wilmington region as a center of business.

Order Your Copy Today!



Trying to Grow a Business?
2020 Health Care Heroes
2020 WilmingtonBiz 100