Rigrodsky & Long, P.A. Continues Investigation of HealthGrades, Inc. Buyout
August 10 2010 - 3:21PM
Business Wire
Rigrodsky & Long, P.A. announces that it is investigating
potential claims against the board of directors of HealthGrades,
Inc. (“HealthGrades” or the “Company”) (Nasdaq:HGRD) concerning
possible breaches of fiduciary duty and other violations of law
related to the Company’s entry into an agreement to be acquired and
taken private by an affiliate of Vestar Capital Partners V, L.P.
(“Vestar”) in a transaction valued at approximately $294 million.
(http://www.rigrodskylong.com/news/HealthGradesInc.-HGRD).
On August 10, 2010, Vestar commenced a cash tender offer of
$8.20 in cash for each share of HealthGrades common stock
outstanding (the “Tender Offer”). The Tender Offer will expire at
9:00 a.m., New York City time, on September 10, 2010, unless
otherwise extended. In addition, executive officers of HealthGrades
beneficially owning approximately 21% of HealthGrades’ fully
diluted shares have entered into agreements to support the
transaction and to tender or otherwise sell shares to Vestar. The
investigation concerns whether HealthGrades’ board of directors
failed to adequately shop the Company and obtain the best price
possible for HealthGrades’ shareholders before entering into the
agreement with Vestar.
As recent as July 28, 2010, HealthGrades issued its second
quarter 2010 financial results wherein it announced an increase in
ratings and advisory revenue of 25%. The Company also affirmed its
full year guidance for ratings and advisory revenue growth of 20%
over 2009 with an operating margin of between 19% to 22%. Indeed,
Company Chairman and CEO, Kerry Hicks, commented: “We are pleased
with our second quarter results. We are seeing significant
contributions from both our Professional Services and Internet
Business Groups.”
If you own the common stock of HealthGrades and purchased your
shares before July 28, 2010, if you have information or would like
to learn more about these claims, or if you wish to discuss these
matters or have any questions concerning this announcement or your
rights or interests with respect to these matters, please contact
Seth D. Rigrodsky, Esquire or Noah R. Wortman, Case Development
Director, of Rigrodsky & Long, P.A., 919 N. Market Street,
Suite 980, Wilmington, Delaware, by telephone at (888) 969-4242, or
by e-mail to info@rigrodskylong.com.
Rigrodsky & Long, P.A., with offices in Wilmington, Delaware
and Garden City, New York, regularly litigates securities class,
derivative and direct actions, shareholder rights litigation and
corporate governance litigation, including claims for breach of
fiduciary duty and proxy violations in the Delaware Court of
Chancery and in state and federal courts throughout the United
States.
Attorney advertising. Prior results do not guarantee a similar
outcome.
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