Federico Pignatelli, ex-chief executive, current director and stockholder of Biolase, Inc. (BIOL), has demanded an inspection of books and records by Biolase management, to investigate suspected wrongdoing by four directors.
He suspects that these directors, allegedly controlled by one investor Oracle Partners, L.P., which through Oracle Investment Management, Inc. holds about 6.1 million shares, or 16.3 percent, of Biolase common stock and is the company's largest stockholder,. conspired to dethrone him from his position as Biolase Chief Executive, to be replaced by Jeffrey Nugent.
He asserted in his letter that, board is no longer pursuing the best interests of stockholders and have made decisions detrimental to the company that raise serious questions regarding their independence.
Pignatelli believes that Nugent and other directors are conspiring with Oracle to commit corporate waste and divest Biolase of its valuable long-standing assets in the dental field and he added that the Board has not conducted appropriate due diligence into available financing opportunities for Biolase.
Federico Pignatelli has served on the Biolase board of directors continuously since 1991 and presently holds nearly 1.8 million shares, or 4.8 percent, of Biolase common stock.
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