Coventry Health Care, Inc.

Robbins Umeda LLP Announces an Investigation of Coventry Health Care, 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 Coventry Health Care, Inc. (NYSE: CVH) in connection with their efforts to sell the company to Aetna (NYSE: AET).  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 August 20, 2012, Coventry and Aetna announced that they had entered into a definitive merger agreement pursuant to which Coventry will be acquired by Aetna.  According to the terms of the deal, Aetna will acquire Coventry for $27.30 in cash and 0.3885 shares of Aetna common stock, which amounts to $42.08 per share based on the closing price of Aetna common shares on Friday, August, 17, 2012.  The acquisition has already been approved by the board of directors of both companies.  The merger is expected to close mid-2013. 

Robbins Umeda LLP’s investigation focuses on whether the board of directors at Coventry is undertaking a fair process to obtain maximum value and adequately compensate its shareholders, or seeking to benefit themselves.

On July 27, 2012, Coventry reported financial results for the second quarter of 2012 that exceeded analyst projections.  Specifically, Coventry reported earnings per share of $0.68, which beat the consensus analyst estimates of $0.638 by 6.58%.  Additionally, Coventry’s total revenue of $3.518 billion beat analysts estimates and represents an increase over total revenue of $3 billion during the same quarter of the previous year.  Given these financial results, Robbins Umeda LLP is examining the board’s decision to sell Coventry now rather than allow shareholders to continue to participate in the company’s continued success and future growth prospects. 

Robbins Umeda LLP attorneys highlight that Coventry 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.

 

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