Genzyme Announces Settlement of Lawsuit Concerning Consolidation of Tracking Stocks
Aug. 9 -- Genzyme Corp. today announced that it has reached an agreement in principle to settle a class action lawsuit brought by a group of shareholders following the consolidation of Genzyme’s tracking stock structure in 2003.
Under the terms of the settlement, Genzyme will pay a total of $64 million to a class of shareholders who held Genzyme Biosurgery stock on May 8, 2003. This settlement will result in the dismissal of the case in U.S. District Court for the Southern District of New York, which, in turn, Genzyme believes will result in the dismissal of a related case currently pending in the Massachusetts Superior Court. The terms of the settlement are subject to court approval.
Genzyme believes that settling the case at this time is in the best interests of all parties, and continues to believe that its consolidation of the tracking stock structure was done in accordance with the terms of the company’s charter, and to the long-term benefit of its shareholders.
About Genzyme
One of the world's leading biotechnology companies, Genzyme is dedicated to making a major positive impact on the lives of people with serious diseases. Since 1981, the company has grown from a small start-up to a diversified enterprise with more than 9,500 employees in locations spanning the globe and 2006 revenues of $3.2 billion. In 2007, Genzyme was chosen to receive the National Medal of Technology, the highest honor awarded by the President of the United States for technological innovation. In 2006 and 2007, Genzyme was selected by FORTUNE as one of the “100 Best Companies to Work for†in the United States.
With many established products and services helping patients in nearly 90 countries, Genzyme is a leader in the effort to develop and apply the most advanced technologies in the life sciences. The company's products and services are focused on rare inherited disorders, kidney disease, orthopaedics, cancer, transplant, and diagnostic testing. Genzyme's commitment to innovation continues today with a substantial development program focused on these fields, as well as immune disease, infectious disease, and other areas of unmet medical need.
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This press release contains forward-looking statements, including the statements regarding the proposed settlement of the class action lawsuit related to the consolidation of Genzyme’s tracking stock structure and the expected dismissal of similar litigation currently pending in the Massachusetts Superior Court. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected in these forward-looking statements. These risks and uncertainties include, among others, our ability to negotiate final terms of a settlement agreement, our ability to obtain approval from the court, plaintiffs, and plaintiffs’ counsel for the settlement terms, and the risks and uncertainties described in reports filed by Genzyme with the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended, including without limitation the information under the heading "Risk Factors" in the Management's Discussion and Analysis of Financial Condition and Results of Operations section of the Genzyme Quarterly Report on Form 10-Q for the quarter ending June 30, 2007. Genzyme cautions investors not to place substantial reliance on the forward-looking statements contained in this press release. These statements speak only as of the date of this press release, and Genzyme undertakes no obligation to update or revise the statements.
Source: Genzyme Corporation