Robbins Umeda LLP Announces Investigation of Continucare Corporation
28 June 2011 - 11:45AM
Business Wire
Robbins Umeda LLP, a shareholder rights litigation firm, is
interested in helping shareholders of Continucare Corporation
(NYSE: CNU). The firm has commenced an investigation into possible
breaches of fiduciary duty and other violations of state law by
members of the board of directors of Continucare in connection with
its efforts to sell the company to Metropolitan Health Networks,
Inc. (NYSE AMEX: MDF).
If you own stock in Continucare and would like more information
about your shareholder rights, please contact Gregory E. Del Gaizo
at 800-350-6003 or via the shareholder information form on our
website.
On June 27, 2011, Continucare announced that it had entered into
a definitive merger agreement with Metropolitan Health. Pursuant to
this agreement, Metropolitan Health will acquire all outstanding
shares of Continucare in a cash and stock transaction, if the
merger is closed. Continucare shareholders will receive $6.25 per
share in cash and 0.0414 of a share of Metropolitan Health common
stock for each share of Continucare common stock they own, if the
merger is closed. The transaction is expected to close in the third
quarter of 2011.
The investigation focuses on whether Continucare's board is
undertaking a fair process to obtain maximum value and adequately
compensate its shareholders in light of the company's recent
positive financial results. On May 5, 2011, Continucare reported
third quarter EPS results of $0.12, beating analyst estimates of
$0.11, and well above the $0.09 reported for the same period last
year. Additionally, Continucare recently enjoyed its 16th
consecutive quarter of year-over-year improvement.
In addition, our firm is investigating whether self-dealing and
other employment guarantees played a part in the decision by
Continucare's board to enter into agreements with Metropolitan
Health. According to a press release issued by Continucare and
Metropolitan Health, upon closing, Gemma Rosello, Continucare's
current Executive Vice President of Operations, is slated to become
the President of Continucare Corporation, a wholly-owned subsidiary
of Metropolitan Health.
Robbins Umeda LLP represents individual and institutional
shareholders in derivative, direct, and class action lawsuits. The
firm's skilled litigation teams include former federal prosecutors,
former defense counsel from top multinational corporate law firms,
and career shareholder rights attorneys. For more information,
please go to http://www.robbinsumeda.com.
Press release link:
http://www.robbinsumeda.com/shareholders-rights-blog/continucare-corporation/
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