Courtesy of Benzinga.
Savient Pharmaceuticals, Inc. (Nasdaq: SVNT) today announced that the Delaware Court of Chancery has issued a bench ruling granting both of Savient’s motions in the lawsuit brought against the Company by Tang Capital Partners, LP and certain other holders of Savient’s convertible notes. The Court of Chancery decided that the plaintiff noteholders do not have standing to bring an action to appoint a receiver for Savient and that an event of default has not occurred under Savient’s convertible notes. The Court has not yet come to a conclusion on the plaintiff’s claims for breach of fiduciary duty and waste. Savient continues to believe that all outstanding claims alleged by the plaintiffs are without merit, and intends to vigorously defend this lawsuit to its completion. The Court of Chancery’s decision is subject to appeal by the plaintiffs. In addition, Savient’s claim for damages against Tang Capital remains outstanding.
