RVNC Merger Goes Wrong Investors Take Legal Action

Investors in Revance were stunned after a merger deal took a bad turn, which analysts said caused Revance "reputational damage." The news sent the stock into a free fall, losing 20% in one day. Furious investors are taking legal action to recover their losses.

In 2020, Biotech company Revance penned a distribution agreement with Teoxane. The agreement required Revance maintain set purchasing and distribution levels for some of Teoxane's products.

In August 2024, Revance announced Crown Labs sought to buy out Revance for $6.66 per share. Revance's board agreed to the deal. But in September 2024, Revance announced it received a notice from Teoxane alleging Revance breached the distribution agreement. Considering that allegation, Crown and Revance put their deal on hold.

Then, in December 2024, Revance announced it finalized the deal with Crown - but Crown slashed its offer by over 50%, to only $3.10 per share. Analysts were stunned by the move and called it a "significant devaluation."

Investors quickly dumped their stock, causing Revance's stock price to plunge. Now, some of those investors are joining the lawsuit.