GW Pharma Moves to Dismiss Securities Suit Alleging Undervaluation

Late last week, defendants GW Pharmaceuticals and its board of directors filed a motion to dismiss Kurt Ziegler and Daniel Brady’s complaint against them. The plaintiff’s complaint alleges the defendants violated the Securities Exchange Act in connection with their acquisition by Jazz Pharmaceuticals.

The defendants are accused of filing and disseminating a materially false and misleading Definitive Proxy Statement. The complaint alleges that the financial advice relied on the proxy statement, a document used to solicit approval of the merger, was created using “unsound forecasting methodologies,” resulting in an undervaluing of GW investors’ shares.

The plaintiffs seek the following relief: the declaration of the action as a class action, and awards of damages, costs, and relief permitted by law.

The plaintiffs are represented by Kahn, Swick, & Foti LLC, and Monteverde & Associates PC.

The defendants are represented by DLA Piper and Wachtell, Lipton, Rosen & Katz LLC.