Prospect Medical Investors Sue Over $363M Merger

Law360, New York (August 26, 2010, 5:34 PM EDT) -- Leonard Green & Partners LP's proposed $363 million acquisition of health care services provider Prospect Medical Holdings Inc. is facing a possible roadblock in the form of a Prospect Medical shareholder suit alleging the merger deal favors officers and directors over other investors.

The putative class action, filed Wednesday in the Delaware Chancery Court, contends that the proposed acquisition by Leonard Green undervalues the company and shortchanges investors at a time when Prospect Medical is thriving financially.

“The proposed transaction will deny class members their right...
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