DALLAS, June 30, 2011 (GLOBE NEWSWIRE) -- The Briscoe Law Firm, PLLC, founded by a former state prosecutor and enforcement attorney for the United States Securities and Exchange Commission, and the securities litigation law firm of Powers Taylor, LLP are investigating potential legal claims against the Board of Directors of Continucare Corporation ("Continucare" or "CNU") related to the sale of Continucare to Metropolitan Health Networks, Inc. ("Metropolitan Health").
The definitive merger agreement, which was announced on June 27, 2011, involves a transaction valued at approximately $416 million. Under the proposed buyout, Continucare shareholders will receive $6.25 in cash and 0.0414 of a share of Metropolitan Health common stock for each share of Continucare/CNU common stock they hold. Although the exact aggregate value to Continucare shareholders will depend on Metropolitan Health's share price at closing, based on Metropolitan Health's closing price the day of the acquisition announcement, the aggregate per share value to Continucare shareholders is only $6.45 per share. The transaction is expected to close in the third calendar quarter of 2011.
The firms are investigating the fairness of the proposed transaction to Continucare shareholders, whether the shareholders are being underpaid for their stock, and whether Continucare's Board of Directors acted in the shareholders' best interests. Of particular importance to the firms is the fact that on May 5, 2011 Continucare reported third quarter earnings per share (EPS) of $0.12, which beat prior analyst estimates of $0.11 per share.
If you currently own shares of Continucare/CNU and would like additional information regarding this investigation, or if you have information regarding the allegations involved in this transaction, please contact Patrick Powers at Powers Taylor, LLP, toll free (877) 728-9607, via e-mail at patrick@powerstaylor.com, or Willie Briscoe at The Briscoe Law Firm, PLLC toll free (877) 397-5991, or via email at WBriscoe@TheBriscoeLawFirm.com. There is no cost or fee to you.
The Briscoe Law Firm is a full service business litigation and shareholder rights advocacy firm with more than 20 years of experience in complex litigation matters.
Powers Taylor, LLP is a boutique litigation law firm that handles a variety of complex business litigation matters nationwide, including claims of investor and stockholder fraud, shareholder oppression, shareholder derivative suits, and security class actions.
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