Palomar Medical Technologies Inc (NASDAQ:PMTI) Investor Files Lawsuit Against Takeover By Cynosure, Inc

If you purchased shares of Palomar Medical Technologies Inc (NASDAQ:PMTI) prior to March 18, 2013, and currently hold any of those NASDAQ:PMTI, you shares have certain options and you should contact the Shareholders Foundation, Inc.

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Company Name(s): 
Palomar Medical Technologies
Case Name: 
Palomar Medical Technologies Deal Case 04/19/2013
Case Status: 
Lawsuit Filed
Affected Securities
NASDAQ: PMTI
Lawsuit Overview
Type of Lawsuit: 
Mergers and Acquisition
Date Filed: 
04/19/2013
Summary: 

April 22, 2013 (Shareholders Foundation) - An investor in shares of Palomar Medical Technologies Inc (NASDAQ:PMTI) filed a lawsuit in effort to halt the proposed takeover of Palomar Medical Technologies Inc by Cynosure, Inc for a value of $13.65 per NASDAQ:PMTI share.

The plaintiff alleges that the defendants breached their fiduciary duties owed to NASDAQ:PMTI stockholders arising out of their attempt to sell the company at an unfair price and process.

On March 18, 2013, Cynosure, Inc. (NASDAQ: CYNO) and Palomar Medical Technologies, Inc. (NASDAQ: PMTI) announced that they have signed an agreement, pursuant to which Cynosure will acquire Palomar Medical Technologies in a cash and stock transaction valued at approximately $294 million.Palomar shareholders will receive $13.65 per share of Palomar common stock: $6.825 per share in cash and $6.825 per share in Cynosure common stock (subject to adjustment and collar provisions described in the definitive agreement).

However, the plaintiff claims that the offer is too low and undervalues the company. Indeed, at least one analyst has set the high target price for NASDAQ:PMTI shares at $14.50 per share. Furthermore, despite the too low price the plaintiff also says that the takeover process is unfair to NASDAQ:PMTI investors.

NASDAQ:PMTI shares closed on April 22, 2013, at $13.71 per share.