SOURCE: Brower Piven, A Professional Corporation

August 30, 2010 12:06 ET

Brower Piven Announces Class Action Lawsuit in Connection With the Acquisition of Prospect Medical Holdings, Inc. by Affiliates of Leonard Green & Partners, L.P., Ivy Holdings, Inc. and Ivy Merger Sub Corp.

STEVENSON, MD--(Marketwire - August 30, 2010) -  Brower Piven, A Professional Corporation announces that a class action lawsuit has been commenced in the Delaware Chancery Court on behalf of all shareholders of Prospect Medical Holdings, Inc. ("Prospect" or the "Company") (NASDAQ: PZZ). 

According to a complaint filed, on or around August 16, 2010, the Board caused Prospect to enter into an agreement and plan of merger (the "Merger Agreement") to be acquired by Leonard Green & Partners, L.P., Ivy Holdings, Inc. and Ivy Merger Sub Corp. (collectively "LGP") in a transaction valued at approximately $363 million, including the assumption of approximately $158 million in Prospect's net debt. The complaint alleges, among other things, that the Proposed Transaction is particularly troubling in light of the fact that certain of the Individual Defendants and certain of the Company's executives have agreed to enter into a Contribution and Subscription Agreement and a Company Stockholder Voting Agreement. Accordingly, the complaint alleges that in approving the Merger Agreement, the Individual Defendants breached their fiduciary duties to plaintiff and the Class. Furthermore, LGP and the Company knowingly aided and abetted the Individual Defendants' breaches of fiduciary duty.

If you are a current owner of shares of Prospect Medical Holdings, Inc., you may obtain additional information about this lawsuit by contacting Brower Piven at www.browerpiven.com, by email at piven@browerpiven.com, by calling 410/415-6701, or at Brower Piven, A Professional Corporation, 1925 Old Valley Road, Stevenson, Maryland 21153. Attorneys at Brower Piven have combined experience litigating securities and class action cases of over 50 years. If you choose to retain counsel, you may retain Brower Piven without financial obligation or cost to you, or you may retain other counsel of your choice. You need take no action at this time to be a member of the class.

Contact Information

  • CONTACT:
    Charles J. Piven
    Brower Piven, A Professional Corporation
    Stevenson, Maryland
    410/415-6701
    Email Contact