SAN DIEGO, Aug. 23, 2021 (GLOBE NEWSWIRE) -- To: All persons or entities who hold common stock of Illumina, Inc. (“Illumina” or the “Company”) (NASDAQ: ILMN).
You are hereby notified that Bottini & Bottini, Inc. is investigating potential claims on behalf of Illumina shareholders relating to Illumina’s acquisition of GRAIL, Inc. (“the Acquisition”) without approval by the European Commission.
On August 18, 2021, Illumina announced that it had closed its acquisition of GRAIL, a cancer diagnostic company, even though the acquisition is currently under a Phase II review by the European Commission that began on July 22, 2021. In addition, on March 30, 2021, the U.S. Federal Trade Commission filed an administrative complaint alleging that the Acquisition violates Section 7 of the Clayton Act.
As a result of Illumina’s failure to obtain EU approval before closing the Acquisition, on August 20, 2021 the EU Commission opened a new investigation to determine whether Illumina breached the “standstill obligation” under Article 7 of the Merger Regulation, which prevents companies from implementing a transaction until it has been cleared by the Commission. Illumina filed a Form 8-K with the SEC on August 18, 2021 admitting that “As a result of Illumina’s decision to proceed with the completion of the Acquisition during the pendency of the European Commission’s review, the European Commission will likely seek to impose a fine on Illumina pursuant to Article 14(2)(b) of the EU Merger Regulation of up to 10% of Illumina’s consolidated annual turnover. In addition, the European Commission, the FTC and/or other governmental or regulatory authorities may seek to impose other fines, penalties, remedies or restrictions.” Analysts have noted that the expected fine could be up to $400 million.
Executive Vice-President Margrethe Vestager, in charge of EU competition policy, said: "We deeply regret Illumina's decision to complete its acquisition of GRAIL, while our investigation into the transaction is still ongoing. Companies have to respect our competition rules and procedures. Under our ex-ante merger control regime companies must wait for our approval before a transaction can go ahead.” Illumina admitted in its SEC filing that any EU decision could “require Illumina to divest all or a portion of the assets or equity interests of GRAIL on terms that are materially worse than the terms on which Illumina acquired GRAIL, any or all of which, individually or in the aggregate, could have a material adverse effect on Illumina’s business, financial condition and results of operation.”
Illumina stock declined by nearly 10% following the GRAIL acquisition announcement.
If you are an Illumina shareholder and would like additional information, contact Frank Bottini, Esq. either via email fab@bottinilaw.com or by telephone at (858) 926-2610, or visit https://www.bottinilaw.com
