San Diego, CA -- (SBWIRE) -- 05/22/2012 -- An investor in NASDAQ:AVCA shares filed a lawsuit against members of the board of directors of Advocat Inc for rejecting the offer by Covington Investments, LLC to take over Advocat Inc at $8.50 per share.
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.
According to the complaint the plaintiff alleges that defendants breached their fiduciary duties by rejecting the offer from Covington Investments, LLC.
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, plaintiff claims that the defendants refused to even consider the $8.50 per-share offer from Covington.
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