HealthGrades Faces Shareholder Suit Over Vestar Deal

Law360, New York (August 17, 2010, 7:20 PM EDT) -- Health Grades Inc. has been hit with a proposed class action alleging that the health care ratings organization did not get the best deal possible for shareholders when it agreed to be acquired by private equity firm Vestar Capital Partners V LP for $294 million.

The proposed class action filed Monday by shareholder Peter P. Weigard in Delaware Chancery Court on behalf of all HealthGrades public stockholders alleges breaches of fiduciary duty stemming from the proposed acquisition and seeks to block the deal.

On July 28,...
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