Robbins Umeda LLP Announces an Investigation of MModal Inc.
Robbins Umeda LLP has commenced an investigation into possible breaches of fiduciary duty and other violations of the law by members of the board of directors of MModal Inc. (NASDAQ: MODL) in connection with their efforts to sell the company to One Equity Partners, the private investment arm of JP Morgan Chase & Company. Concerned shareholders who would like more information about their rights and potential remedies can complete the form below and we will contact you directly. You can also contact attorney Gregory E. Del Gaizo at (800) 350-6003.
On July 3, 2012, MModal announced that it had entered into a definitive merger agreement to be acquired by One Equity Partners. According to the terms of the deal, One Equity Partners will acquire all outstanding shares of the company through an all-cash transaction. Pursuant to the agreement, MModal shareholders will receive $14.00 in cash for each share of the company they own. The transaction is expected to close during the third quarter of 2012.
Robbins Umeda LLP’s investigation focuses on whether the Board of Directors at MModal is undertaking a fair process to obtain maximum value and adequately compensate shareholders in light of the company’s recent positive financial results. On May 8, 2012, MModal reported strong operating results for the first quarter of fiscal year 2012 that exceeded expectations. For the quarter, the company reported record revenues of $117.4 million, a 5.5% increase over the $111.2 million in net revenues reported during the same quarter of the previous year. Additionally, MModal reported total earnings per share of $0.30 for first quarter of 2012, beating consensus analyst estimates of $0.263 by 14.07%.
Additionally, several leading market analysts have released target prices for MModal that value that company’s stock at $15.00 per share, higher than the value currently being offered by One Equity Partners as part of the proposed transaction. Given the company’s impressive financial results and recent target prices, Robbins Umeda LLP is examining the board’s decision to sell MModal now at $14.00 per share rather than allow shareholders to continue to participate in the company’s continued success and future growth prospects.
Robbins Umeda LLP attorneys highlight that MModal shareholders have the option to file a class action lawsuit against the company to secure the best possible price for the company’s shareholders and the disclosure of material information to shareholders so they can vote on the transaction in an informed manner.
Robbins Umeda LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.