RehabCare Group, Inc. Shareholder Investigation by Briscoe Law Firm Concerning Acquisition by Kindred Healthcare, Inc.

The Briscoe Law Firm, PLLC, founded by a former state prosecutor and enforcement attorney for the United States Securities and Exchange Commission, and the securities litigation law firm of Powers Taylor, LLP are investigating potential legal claims against the Board of Directors of RehabCare Group, Inc. (“RehabCare” or “RHB”) (NYSE: RHB) related to the proposed buyout of RehabCare by Kindred Healthcare, Inc. The definitive merger agreement, which was announced on February 8, 2011, involves a combined stock-and-cash transaction valued at approximately $900 million whereby each RehabCare shareholder will receive a fixed ratio of .0471 shares of Kindred Healthcare stock and $26 in cash for each share of RehabCare/RHB common stock they own. The acquisition price reportedly reflects a current value of only $35 per share to RehabCare shareholders.

The investigation relates to the fairness of the proposed transaction to RehabCare shareholders, possible breaches of fiduciary duty and other violations of state law by the Board of Directors of RehabCare for approving this transaction, and whether RehabCare’s Board of Directors acted in the shareholders’ best interests. Although the acquisition price reflects a premium over RehabCare’s closing price the day before the acquisition announcement, RehabCare shares closed over $31.50 per share as recently as May 10, 2010. “Based on the lack of an appreciable premium, and other factors, the acquisition price may not be fair to RehabCare shareholders. Our investigation seeks to determine whether the shareholders are being treated fairly in this transaction,” said shareholder rights attorney Willie Briscoe.

If you currently own shares of RehabCare/RHB and would like additional information regarding this investigation, or if you have information regarding the allegations involved in this transaction, please contact Patrick Powers at Powers Taylor, LLP, toll free (877) 728-9607, via e-mail at patrick@powerstaylor.com, or Willie Briscoe at The Briscoe Law Firm, PLLC toll free (877) 397-5991, or via email at WBriscoe@TheBriscoeLawFirm.com. There is no cost or fee to you.

The Briscoe Law Firm is a full service business litigation and shareholder rights advocacy firm with more than 20 years of experience in complex litigation matters.

Powers Taylor, LLP is a boutique litigation law firm that handles a variety of complex business litigation matters, including claims of investor and stockholder fraud, shareholder oppression, shareholder derivative suits, and security class actions.

Rehabcare (NYSE:RHB)
Historical Stock Chart
From Jun 2024 to Jul 2024