Robbins Umeda LLP Announces an Update on Its Investigation of the Acquisition of Prospect Medical Holdings, Inc.
As previously announced, Robbins Umeda LLP has commenced an investigation into possible breaches of fiduciary duty and other violations of state law by members of the Board of Directors of Prospect Medical Holdings, Inc. (“Prospect” or the “Company”) (NASDAQ: PZZ) in connection with their efforts to sell Prospect to an entity sponsored by Leonard Green & Partners, L.P. (“Leonard Green”). If the transaction is completed, Prospect shareholders will receive $8.50 in cash for each share of Prospect stock they hold.
Robbins Umeda LLP’s investigation concerns whether the Board of Directors of Prospect undertook a fair process to obtain fair consideration for all shareholders of Prospect. On August 20, 2010, Prospect released a beneficial ownership report. In this report, it was disclosed that certain officers and directors that currently own 50% of Prospect’s outstanding shares entered into a voting agreement in which they have agreed to vote all of their shares in favor of the transaction. Additionally, these officers and directors have also agreed to exchange 6.2 million of their Prospect shares for equity ownership interests in Leonard Green in lieu of their receipt of the cash merger consideration for those shares. The Company’s ordinary shareholders do not have the same opportunity to exchange their shares for equity in the post-acquisition company.
If you are a shareholder of Prospect, plan to continue to hold your shares, and would like more information about your rights as a shareholder, please contact attorney Gregory E. Del Gaizo at 800-350-6003 or by e-mail at firstname.lastname@example.org.