Damning Depomed shareholder calls for changes at the top

11 April 2016

Starboard Value, a privately owned hedge fund sponsor, has written a strongly-worded letter to US specialty drugmaker Depomed (Nasdaq: DEPO), in which the investor now owns almost 10% of the shares.

The letter was written by Starboard Value’s managing member Jeffrey Smith to Jim Schoeneck, president and chief executive of Depomed, which focuses on the treatment of pain and other central nervous system conditions.

Prior to sending out the letter, Starboard Value had filed a Schedule 13D with the US Securities and Exchange Commission, which a group must do on acquiring more than 5% of a voting class of a company’s equity securities.

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