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Medical Nutrition USA, Inc. Securities Litigation
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Medical Nutrition USA, Inc. (NasdaqCM: MDNU) shareholder litigation in connection
with alleged unfair takeover offer
On June 11, 2010, Medical Nutrition USA, Inc. (“Medical Nutrition” or the “Company”)
announced that it had agreed to sell the Company to Danone North America, Inc.
("Danone"). Under the terms of the transaction, Medical Nutrition shareholders will
receive $4.00 in cash for each Medical Nutrition share of common stock they own for a
total transaction value of approximately $62.3 million.
For the year ending January 31, 2010, Medical Nutrition reported total revenue of
$16.089 million and net income of $483 thousand as compared to total revenue and a
net loss of $13.747 million and $492 thousand, respectively, for the prior year. The
investigation concerns whether the Medical Nutrition Board of Directors breached their
fiduciary duties to Medical Nutrition stockholders by failing to adequately shop the
Company before entering into this transaction and whether Danone is underpaying for
Medical Nutrition shares, thus unlawfully harming Medical Nutrition stockholders. In
particular, at least one analyst set a price target for Medical Nutrition stock at $8.25 per
share.
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