Too Bad Biotechs Can’t Cure Tort Abuse

In some recent merger cases, shareholder plaintiffs have based their suits on the claim, among others, that the venture capitalists on the board who constituted a majority had conspired to sell the company at a discount to the detriment of minority shareholders. Venture capitalists aren’t often accused of undue generosity, but especially not to buyers. San Diego-based Trius Therapeutics, which was sold to Cubist Pharmaceuticals well over a year ago, was sued in both Delaware and California. Though the suit was dismissed in Delaware, the case grinds on in California.