A lawsuit was filed for investors in shares of Cotiviti Holdings, Inc. (NYSE: COTV) in connection with the proposed takeover and NYSE: COTV stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 08/07/2018 -- The Shareholders Foundation announces that an investor, who currently holds shares of Cotiviti Holdings, Inc. (NYSE: COTV), concerning whether the takeover of Cotiviti Holdings, Inc.
Investors who purchased shares of Cotiviti Holdings, Inc. (NYSE: COTV) and currently hold any of those NYSE: COTV shares have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NYSE: COTV stockholders by agreeing to sell Cotiviti Holdings, Inc.cheaply via an unfair process.
Atlanta, GA based Cotiviti Holdings, Inc., through its subsidiaries, provides analytics-driven payment accuracy and spend management solutions primarily for the healthcare sector in the United States, Canada, the United Kingdom, and India. On June 19, 2018, Cotiviti Holdings, Inc. (NYSE: COTV) and Verscend Technologies, Inc., a portfolio company of Veritas Capital and a leader in data-driven healthcare solutions, announced that they have entered into an agreement whereby Verscend has agreed to acquire Cotiviti for $4.9 billion in cash.
Under the terms of the agreement, Cotiviti Holdings, Inc. (NYSE: COTV) shareholders will receive $44.75 in cash per share of Cotiviti common stock, and Verscend will assume all of Cotiviti's outstanding debt, resulting in an enterprise value of approximately $4.9 billion.
However, plaintiff claims that the proposed consideration NYSE: COTV shareholders will receive is grossly inadequate and undervalues Cotiviti Holdings, Inc. Indeed, at least one analyst has set the high target price for NYSE: COTV shares at $45.00 per share. Furthermore, Cotiviti Holdings, Inc reported that its annual Total Revenue rose from $625.16 million in 2016 to $678.66 million in 2017 and that its net Income increased from $48.85 million in 2016 to $138.2 million in 2017. In addition, the plaintiff alleges that the process is also unfair NYSE: COTV stockholders
Shares of Cotiviti Holdings, Inc. (NYSE: COTV) closed on June 22, 2018 at $44.19 per share.
Those who are current investors in Cotiviti Holdings, Inc. (NYSE: COTV) shares have certain options and should contact the Shareholders Foundation.
Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com