Owners of MAKO stock filed lawsuits in Florida and Delaware to block the merger. The 6 Florida lawsuits were consolidated into a single case, which was later stayed by the Sunshine State’s 17th Judicial Circuit for Broward County, according to a regulatory filing.
Mako said it reached a deal to settle the 3 Delaware cases, which were also consolidated, in return for amending the disclosures in the proxy statement detailing the Stryker acquisition.
If approved by Delaware’s Chancery Court, the settlement will result in the dismissal of the shareholders’ lawsuit there, according to the filing.
Mako 1st announced the Stryker buyout in September. The merger agreement included a provision for the issuance of another roughly 4 million Mako shares, presumably to fund October’s $2.5 million acquisition of partner Pipeline Biomedical Holdings in a cash/stock deal.
Mako, founded in 2004, pushed robotic surgery into the orthopedics space with its Rio device and technologies for knee and hip replacement surgery. The $30-per-share price Kalamazoo, Mich.-based Stryker agreed to represents an 85.5% premium over Mako’s $16.17 closing price the day before the deal was announced.