SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
AMENDMENT NO. 1
TO
SCHEDULE 14D-9
(Rule 14d-101)
Solicitation/Recommendation Statement Under Section 14(d)(4)
of the Securities Exchange Act of 1934
MONOGRAM BIOSCIENCES, INC.
(Name of Subject Company)
MONOGRAM BIOSCIENCES, INC.
(Name of
Person Filing Statement)
Common Stock, $0.001 par value per share
(Title of Class of Securities)
60975U207
(CUSIP Number of Class of Securities)
William D. Young
Chief Executive Officer
Monogram Biosciences, Inc.
345 Oyster Point Blvd.
South San Francisco, California 94080
(650) 635-1100
(Name, Address and Telephone Number of Person Authorized to Receive Notices and
Communications on Behalf of the Person Filing Statement)
With copies to:
Barbara L. Borden, Esq.
Steven M. Przesmicki, Esq.
Cooley Godward Kronish LLP
4401 Eastgate Mall
San Diego, CA 92121
(858) 550-6000
¨
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Check the box if the filing relates solely to preliminary communications made before the commencement of a tender offer.
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This Amendment No. 1 to the Schedule 14D-9 (this
Amendment No. 1
)
amends and supplements the Solicitation/Recommendation Statement on Schedule 14D-9 filed with the Securities and Exchange Commission (the
SEC
) on July 1, 2009 (as amended from time to time, the
Schedule
14D-9
) by Monogram Biosciences, Inc., a Delaware corporation (
Monogram
or the
Company
). The Schedule 14D-9 relates to the tender offer by Mastiff Acquisition Corp.
(
Purchaser
), a Delaware corporation and a wholly-owned subsidiary of Laboratory Corporation of America Holdings, a Delaware corporation (
LabCorp
), disclosed in a Tender Offer Statement on Schedule
TO, dated July 1, 2009 (as amended or supplemented from time to time, and together with the exhibits thereto, the
Schedule TO
), to purchase all of the outstanding shares of Common Stock not owned by LabCorp, Purchaser
or the Company at a purchase price of $4.55 per share, net to the seller in cash, without interest and subject to any tax withholding (the
Offer Price
), upon the terms and subject to the conditions set forth in the Offer to
Purchase, dated July 1, 2009 (as amended or supplemented from time to time, the
Offer to Purchase
), and in the related Letter of Transmittal (as amended or supplemented from time to time, the
Letter of
Transmittal
, which together with the Offer to Purchase constitute the
Offer
). The Schedule TO was filed with the SEC on July 1, 2009. Copies of the Offer to Purchase and Letter of Transmittal are filed as
Exhibits (a)(1)(A) and (a)(1)(B) to the Schedule 14D-9, respectively.
All capitalized terms used in this Amendment No. 1 without
definition have the meanings ascribed to them in the Schedule 14D-9.
The information in the Schedule 14D-9 is incorporated into this
Amendment No. 1 by reference to all of the applicable items in the Schedule 14D-9, except that such information is hereby amended and supplemented to the extent specifically provided in this Amendment No. 1.
Item 8.
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Additional Information.
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All
of the paragraphs under the heading
Legal Proceeding
included in Item 8 (
Additional Information
) of the Schedule 14D-9 are hereby replaced in their entirety with the following paragraphs:
On June 26, 2009, a putative shareholder class action lawsuit was filed by a single plaintiff against Monogram, LabCorp, Purchaser and
individual members of Monograms board of directors in the Superior Court of the State of California, San Francisco County (Case No. CGC-09-489866). On July 2, 2009, a second putative shareholder class action lawsuit was filed by a single
plaintiff against Monogram, LabCorp, and individual members of Monograms board of directors in the Superior Court of the State of California, San Francisco County (Case No. CGC-09-490059). The plaintiffs in these two actions subsequently
dismissed the actions without prejudice in San Francisco County and, on July 8, 2009, joined as plaintiffs in a lawsuit in the Superior Court of the State of California, San Mateo County (Civil No. 09-485636). The action, styled Andrei
Pevgonen, Rebecca Jordan and Charulata Patel v. William Young, et al., alleges that (i) individual members of Monograms board of directors violated their fiduciary duties to Monograms stockholders, including their duties of loyalty,
good faith, independence and candor, and allegedly failed to maximize value for Monograms stockholders by conducting an unfair sales process and entering into the merger agreement, (ii) LabCorp and Monogram aided and abetted the other
defendants in the breaches of their fiduciary duties, and (iii) certain disclosures contained in the materials disseminated to Monograms stockholders in connection with the acquisition of Monogram by Purchaser and LabCorp are inadequate.
The plaintiffs seek to enjoin the acquisition of Monogram by Purchaser and LabCorp and seek other monetary damages in an unspecified amount and have filed motions seeking expedited discovery and proceedings.
On June 30, 2009, a putative shareholder class action lawsuit was filed by a single plaintiff against Monogram, LabCorp, Purchaser and individual
members of Monograms board of directors in the Court of Chancery of the State of Delaware (Civil Action No. 4703-CC). On July 7, 2009, a second putative shareholder class action lawsuit was filed by a single plaintiff against
Monogram, LabCorp, Purchaser and individual members of Monograms board of directors in the Court of Chancery of the State of Delaware (Civil Action No. 4717-U.A.). On July 9, 2009, the two actions were consolidated under Civil Action
No. 4703-CC. The action, captioned
In re Monogram Biosciences, Inc. Shareholder Litigation
, alleges that (i) individual members of Monograms board of directors violated their fiduciary duties to Monograms stockholders,
including their duties to (a) fully inform themselves of Monograms market value before taking action, (b) act in the interests of the equity owners, (c) maximize shareholder value, (d) obtain the best financial and other
terms when Monograms existence
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will be materially altered by the transaction, (e) act in accordance with fundamental duties of loyalty, care and good faith and (f) act
independently in the best interest of the corporation and its shareholders, and (ii) LabCorp and Monogram aided and abetted the other defendants in the breaches of their fiduciary duties. The action further alleges that certain disclosures
contained in the materials disseminated to Monograms stockholders in connection with the acquisition of Monogram by Purchaser and LabCorp are inadequate. The plaintiffs seek to enjoin the acquisition of Monogram by Purchaser and LabCorp and
seek other monetary damages in an unspecified amount. The plaintiffs have filed motions with the court seeking expedited discovery and a preliminary injunction barring consummation of the offer and the merger. On July 9, 2009, the Court denied
without prejudice plaintiffs motion for expedited proceedings and gave plaintiffs until Monday, July 13, 2009 to submit additional argument for the Courts consideration.
LabCorp and Monogram believe the allegations in each of the complaints described above are entirely without merit, and the defendants intend to
vigorously defend each action. However, even a meritless lawsuit potentially may delay consummation of the transactions contemplated by the merger agreement, including the offer and the merger, and the costs to LabCorp and Monogram in defending the
lawsuits may be significant.
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SIGNATURE
After due inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.
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MONOGRAM BIOSCIENCES, INC.
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By:
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/s/ William D. Young
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Name:
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William D. Young
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Title:
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Chairman of the Board of Directors
and Chief
Executive Officer
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Dated: July 13, 2009
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