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Levi & Korsinsky, LLP Investigates Possible Breach of Fiduciary Duty by the Board of Osteotech, Inc. In Connection With Medtron

^{Published on 2010-08-17 10:35:27 - Market Wire}
 

NEW YORK--([ BUSINESS WIRE ])--Levi & Korsinsky is investigating the Board of Directors of Osteotech, Inc. (aOsteotecha or the aCompanya)(Nasdaq: OSTE) for possible breaches of fiduciary duty and other violations of state law in connection with the proposed transaction in which Medtronic, Inc. (aMedtronica)(NYSE:[ MDT ]) will acquire Osteotech for $6.50 per share in cash. The total value of the transaction is expected to be approximately $123 million.

The investigation concerns whether the Osteotecha™s Board of Directors breached their fiduciary duties to stockholders by failing to adequately shop the Company before entering into this transaction and whether Medtronic is underpaying for Osteotech shares, thus unlawfully harming Osteotecha™s stockholders. In particular, the Company is in the wake of a potential proxy fight with a dissident shareholder who owns 23% of Osteotecha™s common stock, citing the Company's recent beaten-down stock and erosion of the Company's results due to the Companya™s inept Board. The proposed transaction is opportunistic in that Medtronic is proposing to acquire the Company at a time when the Company is experiencing a temporary decline. The investigation also focuses on whether Osteotecha™s Board agreed to this transaction as a defensive measure in connection with the potential proxy fight.

If you own common stock in Osteotech and wish to obtain additional information, please contact Joseph E. Levi, Esq. either via email at [ jlevi@zlk.com ] or by telephone at (212) 363-7500 or visit [ http://www.zlk.com/osteotech-oste.html ].

Levi & Korsinsky has expertise in prosecuting investor securities litigation and extensive experience in actions involving financial fraud and represents investors throughout the nation, concentrating its practice in securities and shareholder litigation.

CONTACT:
Levi & Korsinsky, LLP
Joseph Levi, Esq.
Eduard Korsinsky, Esq.
30 Broad Street - 15th Floor
New York, NY 10004
Tel: (212) 363-7500
Fax: (212) 363-7171
[ www.zlk.com ]