Faruqi & Faruqi, LLP’s national practice focuses on complex civil litigation. The firm practices in the areas of Securities, Merger & Transactional, Shareholder Derivative, Antitrust, Consumer Class Action, and Wage & Hour litigation.
Thursday, July 2, 2015
Faruqi & Faruqi Investigation: Health Net Inc.
Faruqi & Faruqi, LLP Announces the Investigation of Health Net Inc. (HNT) Over the Proposed Sale of the Company to Centene Corp.
Faruqi & Faruqi, LLP, a leading national securities firm headquartered in New York City, is investigating the Board of Directors of Health Net Inc. (“Health Net” or the “Company”) (NYSE:HNT) for potential breaches of fiduciary duties in connection with the sale of the Company to Centene Corp. for approximately $6.3 billion in a cash-and-stock deal.
The Company’s stockholders will only receive 0.622 shares of Centene and $28.25 in cash for each Company share held, for a total consideration of $78.57 based on Wednesday’s closing price. However, at least one analyst’s target price is set at $75.00 and the share price of the Company is expected to continue climbing.
The investigation focuses on whether Health Net’s Board of Directors breached their fiduciary duties to the Company’s stockholders by failing to conduct a fair sales process and whether and by how much this proposed transaction undervalues the Company to the detriment of Health Net’s shareholders.