A law firm has launched an inquiry into Kezar Life Sciences' decision-making process in its agreement to combine with Aurinia Pharmaceuticals, citing concerns that insiders may obtain preferential terms and that deal provisions could limit competing bids. The firm is examining potential violations of federal securities laws and fiduciary duties.

Under the agreement, Aurinia will acquire Kezar for $6.955 in cash per share and one non-transferable contingent value right that vests based on undisclosed clinical or regulatory milestones. The CVR structure may entitle shareholders to additional payments if certain development thresholds are met.

Affected investors may pursue claims to seek higher deal consideration, supplementary disclosures or other relief under a contingent fee arrangement that requires no upfront legal fees. Shareholders are encouraged to review their rights to determine whether to participate in litigation aimed at securing improved financial outcomes.