San Diego, CA -- (ReleaseWire) -- 11/14/2012 -- An investor in shares of Metropolitan Health Networks, Inc. (NYSE:MDF) filed a lawsuit against directors in effort to block the proposed takeover of Metropolitan Health Networks by Humana Inc at $11.25 per NYSE:MDF share.
Investors who purchased shares of the Metropolitan Health Networks, Inc. (NYSE:MDF) prior to November 5, 2012, and currently hold any of those NYSE:MDF shares have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
The plaintiff alleges that the defendants breached their fiduciary duties owed NYSE:MDF stockholders by agreeing to sell the company too cheaply via an unfair process to Humana Inc.
On November 5, 2012, Humana Inc. and Metropolitan Health Networks, Inc. announced that they have entered into an agreement pursuant to which Humana will acquire Metropolitan Health Networks in a transaction valued at approximately $850 million plus transaction costs. Under the terms of the proposed transaction, Metropolitan Health Networks stockholders will receive $11.25 per share in cash from Humana for each Metropolitan Health Networks, Inc. (NYSE:MDF) share.
However, the plaintiff claims that the $11.25-offer is unfair to Metropolitan Health Networks stockholders and undervalues the company. Indeed, at least one analyst has set the high target price for MDF shares at $13.00 per share. Furthermore, Metropolitan Health Networks’ financial performance improved over the past years. In fact, its annual Revenue rose from $317.21 million in 2008 to $450.79 million in 2011 and its Net Income increased from $10.20 million in 2008 to $22.71 million in 2011. Its second quarter Revenue in 2012 rose to $193.41 million from $97.32 million in 2011. In addition, shares of Metropolitan Health Networks, Inc. (NYSE:MDF) grew at an exceptional growth rate prior to the announcement In fact, NYSE:MDF shares grew from as low as $3.92 per share to as high as $10.97 per share on November 2, 2012.
Those who are current investors in Metropolitan Health Networks, Inc. (NYSE:MDF), have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego