Mocon Inc. Hit with Securities Lawsuit

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Mocon, Inc. and its board of directors are facing a securities lawsuit filed by a stockholder who claims the defendants failed to disclose necessary information in a proxy statement they made regarding Ametek Inc.’s proposed acquisition of the company. The suit argues that the price agreed to in the acquisition - $30 cash per share of company stock – undervalues Mocon, which was believed to have “a bright financial outlook” and could “generate significant earnings in the foreseeable future.”

According to the complaint, the proxy statement omits valuable information that stockholders require in order to make an informed decision about whether to vote for the acquisition. The non-disclosures include the details of the sale process, figures used in the analyses performed by Mocon’s financial advisor, and the contents of confidentiality agreements that may have prohibited potential buyers from posing better offers, the suit claims.

The complaint also alleges that the company’s financial advisor received an undisclosed transaction fee for providing investment banking services to Ametek, which could contribute to a conflict of interest.

The suit seeks to cover “all holders of Mocon stock who are being, and will be, harmed by [the] Defendants’ actions.”