New York, NY: (Jun-01-07) Several class action shareholders lawsuits were filed against Biomet Inc. related to its proposed $10.9 billion acquisition. In December 2006, a group of private investors offered $10.9 billion in cash or $44 per share for the Warsaw, IN, based orthopedics maker. Shareholders will vote on the deal June 8, 2007. The investors include LVB Acquisition LLC and LVB Acquisition Merger Sub Inc. The suits claimed that Biomet's board members breached or aided and abetted the breach of fiduciary duties owed to shareholders in relation to the acquisition. The complaints sought various reliefs, including an injunction to prevent the proposed deal.
Though Biomet denied the allegations, it agreed to enter into a settlement agreement to eliminate a possible delay in the closing of the acquisition. The consortium of private equity funds that control LVB Acquisition also agreed that Biomet or its successors will pay the legal fees and costs for the plaintiff's counsel in the amount of $600,000, subject to court approval and the acquisition's closing. [