Press release from PR Newswire
Block & Leviton LLP Investigates Catalyst Health Solutions, Inc.'s Board of Directors for Possible Breaches of Their Fiduciary Duties
Wednesday, April 18, 2012
BOSTON, April 18, 2012 /PRNewswire/ -- Block & Leviton LLP (blockesq.com), a Boston-based law firm representing investors nationwide, is investigating possible breaches of fiduciary duties by the Board of Directors of Catalyst Health Solutions, Inc. ("Catalyst" or the "Company") (Nasdaq: CHSI) with regard to a proposed sale of the Company.
Before trading opened on April 18, 2012, Catalyst announced that it had entered into an Agreement and Plan of Merger with SXC Health Solutions Corp. ("SXC") (Nasdaq: SXCI), pursuant to which SXC will acquire Catalyst for a per share price of $28 in cash plus .6606 of a share of SXC. In a press release issued this morning, SXC touted the purchase price as totaling $81.02 per share, which would represent a premium of 28% over Catalyst's closing price yesterday. However, SXC has seen its stock price climb steeply over the last six months from a low of approximately $40 per share as recently as October 2011. Using SXC's average price over the previous year ($58.86) instead of SXC's closing price yesterday ($80.27), the offer price would be $66.88 per share, which would represent a premium of only 5% over Catalyst's closing price yesterday.
Block & Leviton's investigation seeks to determine, among other things, whether Catalyst's Board of Directors has breached their fiduciary duties by failing to maximize shareholder value in the proposed transaction. If you have any information relevant to this investigation, or if you have questions about your legal rights, please contact Block & Leviton LLP.
Block & Leviton is a Boston-based law firm representing investors for violations of the securities laws. The firm's lawyers have collectively been prosecuting securities cases on behalf of investors for over 50 years.
This notice may constitute attorney advertising.
Contact: BLOCK & LEVITON LLP Mark Delaney, Esq. (617) 398-5650 email@example.com
SOURCE Block & Leviton LLP