Skilled Healthcare Alert: Buyout Of Skilled Healthcare Group- National Securities Law Firm Seeks Higher Price For Shareholders
August 19, 2014
New York, New York
Tripp Levy PLLC, a leading national securities and shareholder rights law firm, announces that it is investigating whether the board members of Skilled Healthcare Group, Inc. (NYSE: SKH) (“Skilled Healthcare” or the “Company”) breached their fiduciary duties in connection with the proposed merger of the Company with Genesis HealthCare.
On August 18, 2014, Skilled Healthcare announced it had signed a definitive agreement to combine with Genesis HealthCare. Under the terms of the merger agreement, Skilled Healthcare shareholders will collectively own 25.75% of the vote and value of the fully-diluted equity of the combined Company. Genesis HealthCare shareholders will own the other 74.25%. The combined Company will operate under the Genesis HealthCare name and will be traded on the NYSE.
The investigation concerns whether the Board of Skilled Healthcare breached their fiduciary duties to stockholders by failing to adequately shop the Company before agreeing to enter into this transaction, and whether Genesis Healthcare is underpaying for Skilled Healthcare shares. Shareholders representing approximately 82.1% of Skilled Healthcare’s voting power have already agreed to the transaction. The investigation also concerns whether there were any conflicts of interest on the part of the senior management and board of Skilled Healthcare in agreeing to merge the company and whether they acted for their own self-interests and not for the benefit of shareholders. Indeed, Robert Fish, Skilled Healthcare’s CEO, was formerly the CEO of Genesis.
Tripp Levy PLLC represents individual and institutional shareholders and, along with its affiliates, has recovered billions of dollars for shareholders in similar actions around the globe. Tripp Levy PLLC is affiliated with the law firm Milberg LLP. Attorney advertising. Prior results do not indicate a similar outcome.