A group of BioSphere Medical Inc. (NSDQ:BSMD) shareholders filed suit to block a proposed merger with Merit Medical Systems Inc. (NSDQ:MMSI).
The lawsuit, filed in Delaware’s Chancery Court, accuses the company and its officers of breaching their fiduciary duties with the proposed sale, according to a regulatory filing.
BioSphere said it believes the suit is "without merit," according to the filing, and plans to "provide a vigorous defense."
Merit Medical and BioSphere inked a $96 million merger agreement in May, for about $4.38 per share. News of the deal sparked a 50 percent spike to $4.27; BioSphere stock has hovered around $4.29 since then. The $4.38-per-share offer represents a 54 percent premium over the stock’s $2.84 closing price May 12, the day before the merger was announced.