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Robbins Umeda LLP Announces an Investigation of Catalyst Health Solutions, Inc.

Wednesday, April 18, 2012 4:30 PM

Shareholder rights firm Robbins Umeda LLP has commenced an investigation into possible breaches of fiduciary duty and other violations of the law by members of the board of directors of Catalyst Health Solutions, Inc. (NASDAQ: CHSI) in connection with their efforts to merge the company with SXC Health Solutions Corporation (NASDAQ: SXCI). Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Gregory E. Del Gaizo at (800) 350-6003, info@robbinsumeda.com, or via the shareholder information form on the firm's website.

On April 18, 2012, Catalyst announced that it had entered into a definitive merger agreement to combine with SXC. According to the terms of the deal, Catalyst and SXC will merge through a cash and stock transaction. Pursuant to the agreement, Catalyst shareholders will receive $28.00 in cash and 0.6606 shares of SXC stock for each share of Catalyst they own, which implies a purchase price of $81.02 per Catalyst share. The transaction is expected to close in the second half of 2012.

Robbins Umeda LLP's investigation focuses on whether Catalyst's board is undertaking a fair process to obtain maximum value and adequately compensate shareholders in light of the company's recent financial results. On February 21, 2012, the company reported revenue and earnings per share that exceeded analyst projections and represented substantial increases over 2010 figures. Specifically, Catalyst reported that full year revenue increased 42% to $5.33 billion and earnings per share increased 23% to $2.37. Given these impressive financial results, Robbins Umeda LLP is examining the board's decision to sell Catalyst rather than allow shareholders to continue to participate in the company's continued success and future growth prospects.

Robbins Umeda attorneys highlight that Catalyst shareholders have the option to file a class action lawsuit against the company to secure the best possible price for the company's shareholders and the disclosure of material information to shareholders so they can vote on the transaction in an informed manner.

Robbins Umeda LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. For more information, please go to http://www.robbinsumeda.com.

Press release link: http://www.robbinsumeda.com/shareholders-rights-blog/catalyst-health-solutions-inc/

Attorney Advertising. Past results do not guarantee a similar outcome.

(Source: Business Wire )
(Source: Quotemedia)

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