1. DURECT is under investigation for potential fiduciary duty breaches due to Bausch Health deal. 2. Shareholders to receive $1.75 per share, totaling about $63 million.
Investigations can damage investor confidence and lead to decreased stock price. Historical examples include investigations leading to share price declines in other biotech firms, impacting valuations negatively.
The investigation raises significant concerns about corporate governance, which directly affects shareholder value. Such legal scrutiny often leads to elevated risks in the eyes of potential investors.
The immediate uncertainty from the investigation could impact DRRX's stock price rapidly. Similar scenarios have shown stock price reactions within days to weeks following announcements of legal concerns.