Sutro Biopharma (STRO) has disclosed a new risk, in the Share Price & Shareholder Rights category.
Sutro Biopharma’s amended organizational documents, which designate the Court of Chancery of the State of Delaware as the exclusive forum for certain types of legal actions, may deter shareholders from pursuing claims. By limiting the jurisdiction for derivative actions, breaches of fiduciary duty, and other internal affair claims, shareholders could be discouraged due to the perceived inconvenience or unfavorable legal environment. While this provision aims to centralize litigation and potentially reduce legal complexity, it may also increase the company’s risk profile by potentially alienating investors who feel their legal recourse options are restricted. Moreover, should these provisions be deemed unenforceable, Sutro Biopharma might face higher litigation costs in other jurisdictions, adversely affecting its financial health.
The average STRO stock price target is $11.40, implying 172.73% upside potential.
To learn more about Sutro Biopharma’s risk factors, click here.
