Shareholders Foundation, Inc.

Medical Action Industries (NASDAQ:MDCI) Investor Alert: Lawsuit Filed to Halt the Takeover by Owens & Minor, Inc

A lawsuit was filed by an investor in shares of Medical Action Industries (NASDAQ:MDCI) in effort to stop the proposed takeover and NASDAQ:MDCI stockholders should contact the Shareholders Foundation.

 

San Diego, CA -- (ReleaseWire) -- 07/01/2014 -- An investor, who currently holds shares of Medical Action Industries (NASDAQ:MDCI) filed a lawsuit in effort to halt the takeover of Medical Action Industries by Owens & Minor, Inc for $13.80 per share.

Investors who purchased shares of Medical Action Industries (NASDAQ:MDCI) and currently hold any of those NASDAQ:MDCI shares have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

The plaintiff alleges that the defendants breached their fiduciary duties owed to NASDAQ:MDCI stockholders by agreeing to sell Medical Action Industries too cheaply via an unfair process to Owens & Minor, Inc.

On June 25, 2014 Owens & Minor, Inc. (NYSE:OMI) and Medical Action Industries Inc. (Nasdaq:MDCI), announced that the two companies have signed an agreement under which Owens & Minor will acquire all outstanding shares of Medical Action for $13.80 per share in cash, representing a total transaction value of approximately $208 million, including assumed debt, net of cash.

However, the plaintiff claims that the offer is too low and undervalues Medical Action Industries. Indeed, Medical Action Industries reported that its Total Revenue rose from $284.76 million for the 12 months period that ended on March 31, 2013 to $287.85 million for the 12 months period that ended on March 31, 2014 and that its Net Loss of $54.86 million for the 12 months period that ended on March 31, 2013 turned into a Net Income of $4.19 million for the 12 months period that ended on March 31, 2014. Shares of Medical Action Industries (NASDAQ:MDCI) traded during 2013 as high as $9.88 per share.

On June 27, 2014, NASDAQ:MDCI shares closed at $13.80 per share.

Those who are current investors in Medical Action Industries (NASDAQ:MDCI) shares have certain options and should contact the Shareholders Foundation.

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