Carl Icahn Sues Illumina Board for Breach of Fiduciary Duties
Investor Carl Icahn Takes Legal Action Against Illumina
Activist-investor Carl Icahn has filed a lawsuit against the board of directors at genetic testing company Illumina, accusing them of breaching their fiduciary duties. The complaint, which remains sealed, alleges wrongdoing related to Illumina’s acquisition of cancer detection test maker Grail. Although further details are not available, Icahn mentioned during the 13D investor conference in New York that the lawsuit revolves around this acquisition.
Illumina and Icahn Yet to Respond
Illumina has stated that it is currently reviewing the complaint filed by Icahn, while there has been no immediate response from Icahn or Grail regarding this matter.
Controversy Surrounding the Acquisition of Grail
Illumina, known for its gene-sequencing machines, repurchased Grail in 2021 despite facing opposition from antitrust regulators in the US and Europe. This decision sparked disagreement with Icahn, who believes that Grail should be divested due to the substantial financial loss incurred by investors. Consequently, Icahn initiated a proxy fight at Illumina.
Illumina’s Divestment Plans
Last week, Illumina announced its intention to divest Grail within 12 months in accordance with the European Commission’s order. However, this action is contingent upon Illumina’s failure to win its legal challenge in court.
New CEO and Previous Leadership Dispute
In September, Illumina appointed Jacob Thaysen from Agilent Technologies as its CEO. This appointment came after the former CEO resigned following a proxy fight with billionaire Carl Icahn.
Overall, Carl Icahn’s lawsuit against Illumina’s board of directors reveals the ongoing tensions surrounding the company’s acquisition of Grail and raises questions about the fiduciary responsibilities of the board. As the legal battle unfolds, the outcome remains uncertain, and the future of Illumina’s relationship with Grail hangs in the balance.
