Oncura Partners shareholders sue Analogic over claimed fraudulent acquisition scheme

Former Oncura Partners owners are seeking more than $24 million in a suit against Analogic (NSDQ:ALOG), claiming it engaged in a fraudulent scheme to avoid paying for Oncura after agreeing to acquire it in January 2016. In the suit, filed July 31, Oncura owners claim that Analogic agreed to pay for their shares in the business over a 4-year period, based on revenue targets, but immediately began to dismantle the company and terminated its sales force to avoid paying. Oncura is a veterinary technology company that offered veterinary ultrasounds systems and teleradiology services. Analogic produced the veterinary ultrasound systems sold by Oncura, according to the suit. The plaintiffs claim that Analogic aimed to buy Oncura to enter the veterinary market through vertical integration, and after 3 rejected offers, it “convinced the plaintiffs to sell and accept deferred consideration for the sale by making numerous fraudulent statements to induce the sale,” according to court documents. Analogic said it would support the company, hire on key executives and its sales team and support further research and development into the company’s next-generation products, according to the plaintiff’s claims, but failed to deliver on any of these promises. In the suit, plaintiffs claim that less than a full year after the acquisition, Analogic decided it would not enter the veterinary market and began to wind down the business. This process included halting further R&D, re...
Source: Mass Device - Category: Medical Devices Authors: Tags: Legal News Mergers & Acquisitions Ultrasound Analogic Source Type: news