Enhancing Merger Process: Coventry Health Care
Class action litigation following the announcement of mergers and acquisitions can result in investor-friendly deal improvements that benefit shareholders. Motley Rice represented three public pension funds as court-appointed sole lead counsel challenging the $7.2 billion acquisition of Coventry Health Care, Inc., by Aetna, Inc.
In re Coventry Health Care, Inc. Securities Litigation, No. 7905-CS (Del. Ch.)
Plaintiffs alleged that the defendants breached their fiduciary duties to Coventry’s shareholders by undertaking a flawed process, involving a conflicted financial advisor, to sell Coventry at a time when it was poised for remarkable growth as a result of recent government healthcare reforms.
After significant expedited discovery, a negotiated settlement was reached that provided for investor-friendly improvements to the deal’s terms, enhanced disclosures and the opportunity for a potential bidder to make a “last chance” offer for Coventry.
If you have questions regarding cases similar to the In re Coventry Health Care, Inc. Securities Litigation settlement or if you would like to discuss a potential case, contact our securities team by email or call 1.800.768.4026.
*Prior results do not guarantee a similar outcome.