Acasti says court dismissed challenge to Grace Therapeutics acquisition

Sep. 30, 2022 9:45 AM ETAcasti Pharma Inc. (ACST), ACST:CABy: Dulan Lokuwithana, SA News Editor

Close up Wooden Law Gavel on the Table

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  • Canadian biopharma (NASDAQ:ACST) gained in the morning hours Friday after the company announced that a U.S. court dismissed a shareholder lawsuit related to its 2021 acquisition of privately held Grace Therapeutics.
  • The company and several executives have faced four stockholder lawsuits alleging that the public disclosures on the merger agreement violated the SEC Act.
  • Two of four cases were voluntarily withdrawn, and the District Court for the Southern District of New York dismissed the remaining two lawsuits on Friday in response to a motion the company and other defendants filed. All four stockholder lawsuits have now been denied subject to appeal, ACST said.
  • According to the merger agreement, ACST shareholders were expected to own ~55% of the combined entity shares, with Grace shareholders owning the remainder.

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