BUYOUT OF ADCARE - LAW FIRM SEEKS HIGHER PRICE FOR SHAREHOLDERS
April 18, 2013
New York, New York
Tripp Levy PLLC, a leading national securities and shareholder rights law firm, announces that it has been retained to represent shareholder of AdCare Health Systems Inc. in connection with the proposed acquisition of the company. It was announced that Brogdon Family will commence a tender offer to acquire AdCare at a price of $8 per share. Brogdon currently owns 12% of AdCare and has a seat on the Board of Directors.
The investigation concerns whether Brogdon is breaching its fiduciary duties as a director and signficant shareholder of the company. An acquisition would consitute a major conflict of interest as its duties are to obtain maximum value for shareholders and not to acquire the company at the lowest price possible. Indeed, analysts have projected the stock is worth at least $8.57 per share. Further, Brogdon is timing this acquisition following the accounting irregularities of the company to take advantage of the company's depressed stock price.
If you are a shareholder of AdCare and would like further information concerning this matter, at no cost or obligation, please contact us at 1-877-772-3975 or email at contact @ tripplevy
I completely agree. They are timing this to coincide with the stock being down based on the accounting issues. They obviously know the true value of this company (from being on the board), so they would not buy this company unless they knew it was worth more than what they are paying. Count me in this lawsuit!