San Diego, CA -- (SBWIRE) -- 05/15/2012 -- An investigation on behalf of investors in NASDAQ:AVCA shares concerning whether members of the board of directors of Advocat Inc are acting in the best interest of shareholders.
Investors who purchased shares of Advocat Inc. (NASDAQ:AVCA) prior to May 11, 2012 and currently hold any of those NASDAQ:AVCA shares have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
The investigations by law firms concern whether certain officers and directors of Advocat Inc. breached their fiduciary duties owed to NASDAQ:AVCA investors in connection with the proposed acquisition.
On May 11, 2012, Covington Investments, LLC announced that it submitted a non-binding proposal to acquire all outstanding common shares of Advocat Inc. (NASDAQ: AVCA) for $8.50 per share in cash in a negotiated transaction. Among other things, Covington Investments, LLC said its offer is a 47% premium over the average closing price of NASDAQ:AVCA shares during the past three years and a 55% premium over the average closing share price during the past 90 days.
However, Covington Investments, LLC said that the board of Advocat Inc. is unwilling to even discuss its proposal.
Therefore the investigation for NASDAQ:AVCA investors concerns whether the Advocat Board of Directors undertakes an adequate sales process, in particularly will maximize shareholder value by negotiating the best price and acted in the shareholders' best interests in connection with the proposed sale.
Those who are current investors in Advocat Inc. (NASDAQ:AVCA) and purchased their Advocat Inc. shares prior to the announcement, have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego