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.
Given these facts, WeissLaw is investigating whether UAM's Board acted in the best interests of UAM's public shareholders to maximize shareholder value prior to entering into the agreement. If you own UAM shares and would like more information about your rights or our investigation, or if you have information to share with us, please contact Joshua Rubin by telephone at (888) 593-4771 or by email at firstname.lastname@example.org.
WeissLaw LLP has litigated hundreds of stockholder class and derivative actions for violations of corporate and fiduciary duties. We have recovered over a billion dollars for defrauded clients and obtained important corporate governance relief in many of these cases. If you have information or would like legal advice concerning possible corporate wrongdoing (including insider trading, waste of corporate assets, accounting fraud, or materially misleading information), consumer fraud (including false advertising, defective products, or other deceptive business practices), or anti-trust violations, please email us at email@example.com or fill out the form on our website, http://www.weisslawllp.com/universal-american-corp/
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SOURCE WeissLaw LLP