SOURCE: Shareholders Foundation, Inc.

Shareholders Foundation, Inc.

September 06, 2012 09:35 ET

Coventry Health Care, Inc. (CVH) Investor Lawsuit to Stop Takeover Announced by Shareholders Foundation

SAN DIEGO, CA--(Marketwire - Sep 6, 2012) - The Shareholders Foundation, Inc. announces that an investor filed a lawsuit for current stockholders in shares of Coventry Health Care, Inc. (CVH) in effort to stop the proposed takeover of Coventry Health Care, Inc. at a value of approximately $42.08 per share.

Investors who purchased shares of Coventry Health Care, Inc. (CVH) prior to August 20, 2012 and currently hold any of those CVH shares, have certain options and should contact the Shareholders Foundation, Inc. at mail@shareholdersfoundation.com or call +1 (858) 779-1554.

On August 20, 2012, Aetna and Coventry Health Care, Inc. announced that they have entered into an agreement pursuant to which Aetna will acquire Coventry Health Care, Inc. Under the terms of the proposed transaction, CVH stockholders will receive $27.30 in cash and 0.3885 Aetna common shares for each Coventry share, or approximately $42.08 per share.

However, the plaintiff alleges that the offer is unfair and grossly inadequate because, among other things, the intrinsic value of CVH stock is materially in excess of the amount offered for those securities in the proposed transaction given the Company's prospects for future growth and earnings.

Furthermore, so the plaintiff, the defendants agreed to preclusive deal protection devices, such as a restrictive no-shop and a $167.5 million termination fee provision, that operate conjunctively and illegally to restrain Coventry Health Care's ability to solicit or engage in negotiations with any third party regarding a proposal to acquire all or a significant interest in the Company and that ensure no competing offers will emerge for the company.

Those who currently are investors in CVH shares and purchased their shares before the announcement, have certain options and should contact the Shareholders Foundation.

The Shareholders Foundation, Inc. is a professional portfolio legal monitoring and settlement claim filing service, which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. The Shareholders Foundation, Inc. is not a law firm. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

Contact Information

  • CONTACT:
    Shareholders Foundation, Inc.
    Trevor Allen
    +1 (858) 779-1554
    mail@shareholdersfoundation.com
    3111 Camino Del Rio North
    Suite 423
    San Diego, CA 92108