athenahealth, Inc. (NASDAQ: ATHN) Investor Lawsuit Filed Over Acquisition

Investors who purchased shares of athenahealth, Inc. (NASDAQ: ATHN) and currently hold any of those NASDAQ: ATHN shares have certain options and should contact the Shareholders Foundation, Inc.

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Company Name(s): 
athenahealth
Case Name: 
athenahealth Deal Case
Case Status: 
Lawsuit Filed
Affected Securities
NASDAQ: ATHN
Lawsuit Overview
Type of Lawsuit: 
Mergers and Acquisition
Summary: 

An investor, who currently holds shares of athenahealth, Inc. (NASDAQ: ATHN), filed a lawsuit against the takeover of athenahealth, Inc.

The plaintiff alleges that the defendants breached their fiduciary duties owed to NASDAQ: ATHN stockholders by agreeing to sell athenahealth, Inc. cheaply via an unfair process.

On November 12, 2018, athenahealth, Inc. (NASDAQ: ATHN), Veritas Capital and Evergreen Coast Capital announced that they have entered into an agreement under which an affiliate of Veritas Capital and Evergreen Coast Capital will acquire athenahealth for approximately $5.7 billion in cash. Under the terms of the agreement, athenahealth shareholders will receive $135 in cash per share.

However, plaintiff claims that the proposed consideration NASDAQ: ATHN shareholders will receive is grossly inadequate and undervalues athenahealth, Inc. Indeed, at least one analyst has set the high target price for NASDAQ: ATHN shares at $179 per share and given that NASDAQ: ATHN shares traded in the open market as recently as July 2018 as high as $162.54 per share. athenahealth, Inc. reported that its annual Total Revenue rose from over $1.08 billion in 2016 to over $1.22 billion in 2017 and that its Net Income increased from $21 million in 2016 to $53.1 million in 2017.
In addition, the plaintiff alleges that the process is also unfair NASDAQ: ATHN stockholders