NEW YORK, Dec. 12, 2016 /PRNewswire/ -- WeissLaw LLP is
investigating possible breaches of fiduciary duty and other
violations of law by the Board of Directors of Universal American
Corp. ("UAM" or the "Company") in connection with the November 17, 2016 proposed acquisition of the
Company by Wellcare Health Plans Inc. ("Wellcare"). Under the
terms of the agreement, the Company's shareholders will receive
$10.00 cash for each UAM share
held.
WeissLaw is investigating whether UAM's Board acted to maximize
shareholder value prior to entering into the agreement.
Notably, the offer price represents a meagre 12% premium over UAM's
November 16 closing price.
Additionally, the Company announced positive financial results for
the third quarter of 2016, reporting total revenues of $343.4 million, up $3.6
million when compared to the $339.8
million reported in the same period of the prior year.
Upon completion of the transaction, Wellcare, one of the smallest
companies in the Medicare Advantage market, will increase its
membership by nearly one-third, making it well-positioned to
compete with industry leaders. Further, Wellcare will gain
many more benefits from the acquisition of UAM, including:
improvements in Medicare Star Ratings which, in turn, will attract
more members; accelerations in revenue growth resulting from market
share gains; expansions and reinforcement of positions in
Maine, Texas, and New
York; and expected annual costs savings of nearly
$30 million.
Given these facts, WeissLaw is investigating whether UAM's Board
acted in the best interests of UAM's public shareholders to
maximize shareholder value prior to entering into the
agreement. If you own UAM shares and would like more
information about your rights or our investigation, or if you have
information to share with us, please contact Joshua Rubin by telephone at
(888) 593-4771 or by email at
stockinfo@weisslawllp.com.
WeissLaw LLP has litigated hundreds of stockholder class and
derivative actions for violations of corporate and fiduciary
duties. We have recovered over a billion dollars for
defrauded clients and obtained important corporate governance
relief in many of these cases. If you have information or
would like legal advice concerning possible corporate wrongdoing
(including insider trading, waste of corporate assets, accounting
fraud, or materially misleading information), consumer fraud
(including false advertising, defective products, or other
deceptive business practices), or anti-trust violations, please
email us at stockinfo@weisslawllp.com or fill out the form
on our website,
http://www.weisslawllp.com/universal-american-corp/
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/universal-american-corp-acquisition-may-not-be-in-the-best-interests-of-uam-shareholders-300376645.html
SOURCE WeissLaw LLP
