San Diego, CA -- (SBWIRE) -- 08/12/2013 -- An investor, who currently holds NYSE:HMA shares, filed a lawsuit in effort to halt the proposed takeover of Health Management Associates Inc by Community Health Systems, Inc.

Investors who purchased shares of the Health Management Associates Inc (NYSE:HMA) and currently hold any of those NYSE:HMA shares have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.

On July 30, 2013, Community Health Systems, Inc. (NYSE: CYH) and Health Management Associates Inc (NYSE:HMA) announced that they have entered into merger agreement pursuant to which Community Health Systems will acquire HMA for approximately $7.6 billion, including the assumption of approximately $3.7 billion of indebtedness. Under the terms of the agreement, Community Health Systems will acquire all of the issued and outstanding common stock of Health Management Associates Inc for a combination of cash and Community Health Systems stock currently valued at $13.78 per NYSE:HMA share, based on Community Health Systems’ closing stock price as of July 29, 2013, and consisting of $10.50 per share in cash plus 0.06942 of a share of Community Health Systems common stock for each NYSE:HMA share. In addition to the cash and stock consideration, Health Management Associates Inc shareholders would also receive one Contingent Value Right (CVR) for each NYSE:HMA share they own, which could yield additional cash consideration of up to $1.00 per share, depending on the outcome of certain matters.

However, the plaintiff alleges that the defendants breached their fiduciary duties owed to NYSE:HMA investors by agreeing to sell the company too cheaply via an unfair process. The plaintiff says that the current offer undervalues the company and is too low. Indeed, NYSE:HMA shares traded on July 10, 2013, at $16.94 per share. Furthermore, Health Management Associates Inc reported that its annual Total Revenue rose from over $4.46 billion in 2010 to over $5.8 billion in 2012 and that its respective Net Income rose from $150.07 million to $164.27 million. Additionally, shares of Health Management Associates Inc (NYSE:HMA) grew from $1.59 in 2009 to almost $17 per share in early July 2013.

Furthermore, the plaintiff claims that the defendants further breached their fiduciary duties by agreeing to a barricade of provisions in the Merger Agreement, such as a no-solicitation clause, a matching rights provision, and a $109 termination fee provision, that protect their personal benefits and all but eliminate the possibility of a topping bidder emerging, unduly binding the Company and its shareholders to the unfair Proposed Acquisition

On August 9, 2013, NYSE:HMA shares closed at $13246 per share.

Those who are current investors in Health Management Associates Inc (NYSE:HMA) and purchased their Health Management Associates shares prior to the announcement, have certain options and should contact the Shareholders Foundation.

Contact:
Shareholders Foundation, Inc.
Trevor Allen
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com