Shareholders File Lawsuit Against Novartis & Alcon Over Merger -- KSF Announces Lawsuit

NEW ORLEANS, LA--(Marketwire - January 11, 2010) - On January 8, 2010, the Erica P. John Fund ("the Fund") filed a lawsuit on behalf of all minority shareholders of Alcon, Inc. (NYSE: ACL) who hold its publicly traded shares.

On January 4, 2010, Novartis, AG (NYSE: NVS) announced that it would exercise its option to purchase approximately 52% of the Alcon shares held by Nestle for approximately $180 per share, or about $28.1 billion, giving it an overall ownership interest in Alcon of approximately 77% of the remaining Nestle shares in Alcon. Thereafter, it would consolidate the two companies based on a merger that the minority shareholders claim is unfair, inequitable and in violation of the company's articles of incorporation and the law.

Concurrent with its announcement to acquire the Nestle stake in Alcon, at $180 per share, Novartis announced that it would use its power to squeeze out the minority shareholders for a stock swap offer of 2.8 shares of Novartis stock, or approximately $145 per Alcon share, based on Novartis' current trading price. Not only is the Novartis bid approximately $8.00 less than the current trading price of Alcon shares, but it is also about $34.00 less than the price per share that Novartis has agreed to pay Nestle for the same class of shares.

Plaintiffs' suit charges that this proposed transaction was structured so as to deprive Alcon's minority shareholders of the true value of their Alcon stock, and it accuses Novartis of attempting to strip shareholders of any protection or legal redress.

The Fund retained the firm of Kahn Swick & Foti, LLC ("KSF") to bring this lawsuit to protect the rights of all minority shareholders in Alcon. The case is the Erica P. John Fund v. Novatis, AG, Nestle, S.A., et al., Civil Action No, 10 CV 139, filed in the United States District Court, Southern District of New York.

If you would like to discuss this case and/or your legal rights, you may e-mail or call KSF Managing Partner Lewis Kahn, without obligation or cost to you, toll free 1-866-467-1400, ext.100, or via cell phone after hours at (504) 301-7900, or by e-mail at lewis.kahn@ksfcounsel.com. You can also contact KSF attorney Neil Rothstein via cell phone at any time at (330) 860-4092.

Contact Information: Contact: Lewis Kahn Kahn Swick & Foti, LLC 650 Poydras St., Suite 2150 1-866-467-1400, ext. 100 email: lewis.kahn@ksfcounsel.com