Cogentix Medical faces legal investigation before possible acquisition — 4 insights

Two legal firms are investigating whether Cogentix’s board breached their duties to stockholders by failing to solicit bids for the company ahead of its potential acquisition by Laborie Medical, Medical Device Investing News reports.

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Here’s what you should know.

1. Cogentix announced in January it agreed to be acquired by Laborie for approximately $239 million.

2. Levi & Korsinsky and Rigrodsky & Long are investigating the sale.

3. When Cogentix Medical President and CEO Darin Hammers referred to the transaction initially, he said, “[It is a] compelling financial opportunity that delivers significant value to our investors who have supported our evolution to becoming a valued player in the urology market.”

4. Neither Cogentix nor Laborie issued a statement in response to the investigation.

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