SOURCE: Shareholders Foundation

Shareholders Foundation

July 17, 2012 09:35 ET

MModal Inc. (MODL) Investor Lawsuit to Stop Takeover Announced by Shareholders Foundation

SAN DIEGO, CA--(Marketwire - Jul 17, 2012) - The Shareholders Foundation, Inc. announces that an investor filed a lawsuit in State Court for current stockholders of MModal Inc. (MODL) against directors of MModal Inc. in an effort to stop the proposed takeover of MModal Inc. by One Equity Partners at $14.00 per share.

If you purchased shares of MModal Inc. (MODL) prior to July 2, 2012 and currently hold any of those MODL shares, you have certain options and you should contact the Shareholders Foundation, Inc. at or call +1 (858) 779-1554.

On July 2, 2012, MModal Inc. (MODL) and One Equity Partners announced that they have entered into an agreement pursuant to which One Equity Partners, the private investment arm of JP Morgan Chase & Co., will acquire all of the outstanding shares of MModal for $14.00 per share in an all-cash transaction.

However, the plaintiff says that the $14 offer is unfair to MODL stockholders as it undervalues the company. In fact, at least one analyst has set the high target price for MODL shares at $16 per share, thus above the current $14 offer.

In addition, the plaintiff claims that the company's largest shareholder, S.A.C. Private Capital Group LLC, is exerting undue influence on the board to sell. Indeed, certain investment funds affiliated with S.A.C. Private Capital Group LLC have already agreed to tender their shares into the offer and to support the transaction.

Furthermore, so the plaintiff, the transaction agreement contains several unreasonable and preclusive deal protection devices including a $28 million termination fee and a no solicitation provision.

Those who currently are investors in MModal Inc. (MODL) 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

    Shareholders Foundation, Inc.
    Trevor Allen
    +1 (858) 779-1554
    3111 Camino Del Rio North
    Suite 423
    San Diego, CA 92108