The Law Office of Vincent Wong is investigating the Board of Directors of Prospect Medical Holdings, Inc. (NasdaqGM: PZZ) for possible breaches of fiduciary duty and other violations of state law in connection with the sale of the Company to an entity sponsored by Leonard Green & Partners, L.P. in which certain stockholders of Prospect will also participate. Under the terms of the deal, Prospect shareholders will receive $8.50 in cash per share for a total transaction value of approximately $363 million, including assumed debt. Some directors and officers of Prospect that currently own nearly 50% of Prospect’s outstanding shares have entered into a agreement in which they have agreed to vote all of their shares in favor of the transaction and have also agreed to exchange approximately 6.2 million of their Prospect shares for equity interests in the sponsored purchasing entity in lieu of their receipt of the cash merger consideration for those shares.
At least one analyst set a price target for Prospect stock of $16.20 per share. The investigation concerns whether the Prospect Board of Directors breached their fiduciary duties to Prospect stockholders by failing to adequately shop the Company before entering into this transaction and whether Prospect stockholders are getting fair value for their shares.
If you own common stock in Prospect and wish to obtain additional information about this investigation and what is being done to advance the shareholders’ interests, please contact Vincent Wong, Esq. directly, via email at email@example.com, by telephone at 212.584.2740, or visit http://www.wongesq.com/prospect-medical-pzz.html.
Vincent Wong, Esq. is an experienced attorney that has represented investors in securities litigations involving financial fraud and violations of shareholder rights.