Conmed Healthcare Management, Inc.
Robbins Umeda LLP Announces an Investigation of Conmed Healthcare Management, Inc.
Robbins Umeda LLP, a shareholder rights litigation 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 Conmed Healthcare Management, Inc. (NYSE: CONM) in connection with their efforts to sell the company to Ayelet Investment LLC, an affiliate of James H. Desnick, M.D.
On July 12, 2011, Conmed announced that it had entered into a definitive merger agreement under which Ayelet Investment will acquire all outstanding shares of the company in a cash transaction. Under the terms of the agreement, Conmed shareholders will receive only $3.85 for each share of Conmed they own. The transaction is expected to close in the third quarter of fiscal year 2011.
The investigation focuses on whether Conmed’s board is undertaking a fair process to obtain maximum value and adequately compensate shareholders in light of the company’s recent positive financial results. Conmed reported first quarter results for fiscal year 2011 that exceeded analyst expectations. On May 11, 2011, the company reported $16.3 million in revenue for the quarter, an 11% increase over the same quarter in the prior year. Moreover, Conmed’s shares have recently traded above the current offer price, with the company’s stock closing at $3.95 on June 24, 2011. Finally, and perhaps most demonstratively, analysts have recently released target prices for Conmed that value the company’s stock at $5.00 per share, much higher than the offer price that forms the basis of the merger agreement.
If you own stock in Conmed and would like more information about your shareholder rights, please complete the form below and we will contact you directly. We also welcome you to call us at 800-350-6003.