Shareholders of Sphinx Pharmaceuticals Corp. filed a class-action lawsuit against Sphinx, its directors and Eli Lilly and Co.on Wednesday, alleging that Sphinx's directors violated theirfiduciary duties in connection with the proposed acquisition ofthe Durham, N.C., company by Lilly. The plaintiffs reportedlywill seek to enjoin the companies from consummating themerger.
The merger must be approved by Sphinx's shareholders beforeit can take place; the plaintiffs apparently hope to avoid havingthe proposed deal go to a vote. Plaintiffs in the class-action suit,filed in Delaware Chancery Court, are reportedly beingrepresented by Morris & Morris, a Wilmington, Del., law firm.-- Karl Thiel
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