NEW YORK, Dec. 12, 2016 /PRNewswire/ -- WeissLaw LLP is investigating possible breaches of fiduciary duty and other violations of law by the Board of Directors of Universal American Corp. ("UAM" or the "Company") in connection with the November 17, 2016 proposed acquisition of the Company by Wellcare Health Plans Inc. ("Wellcare"). Under the terms of the agreement, the Company's shareholders will receive $10.00 cash for each UAM share held.
WeissLaw is investigating whether UAM's Board acted to maximize shareholder value prior to entering into the agreement. Notably, the offer price represents a meagre 12% premium over UAM's November 16 closing price. Additionally, the Company announced positive financial results for the third quarter of 2016, reporting total revenues of $343.4 million, up $3.6 million when compared to the $339.8 million reported in the same period of the prior year. Upon completion of the transaction, Wellcare, one of the smallest companies in the Medicare Advantage market, will increase its membership by nearly one-third, making it well-positioned to compete with industry leaders. Further, Wellcare will gain many more benefits from the acquisition of UAM, including: improvements in Medicare Star Ratings which, in turn, will attract more members; accelerations in revenue growth resulting from market share gains; expansions and reinforcement of positions in Maine, Texas, and New York; and expected annual costs savings of nearly $30 million.