Res-Care, Inc. Board Under Investor Investigation

If you are a current investor in Res-Care, Inc. (NASDAQ:RSCR), and/or have information relating the investigation, you have certain options and you should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this investigation, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
Res-Care
Affected Securities: 
NASDAQ: RSCR

After Res-Care, Inc. announced its takeover by Onex Corporation an investigation on behalf of investors of Res-Care, Inc. (NASDAQ:RSCR) concerning possible breaches of fiduciary duty was announced.

Res-Care, Inc., located in Louisville, KY, is a human service company that provides residential, therapeutic, job training and educational supports to people with developmental or other disabilities, to youth with special needs, to adults who are experiencing barriers to employment and to older people who need home care assistance. Res-Care’s revenue increased within the past four years from $1.30212billion in 2006, to $1.4333billion in 2007, to $1.54358billlion in 2008, and $1.57915billion in 2009.

On Monday, August 16, 2010, ResCare, Inc. (Nasdaq:RSCR) announced that it has received a proposal from Onex Corporation ("Onex") to acquire all of the outstanding shares of common stock of ResCare not owned by affiliates of Onex for $12.60 per share.

Affiliates of Onex, the Toronto-based investment firm, currently hold common stock and preferred stock of ResCare representing 24.9% of the voting power of ResCare stock.

Shares of Res-Care, Inc. (Public, NASDAQ:RSCR) traded before the news at $10.79 per share and increased in response to the announcement to $12.28 per share. But RSCR shares are down from its 5weekHigh of $15.60 per share, $16.55 per share in May 09, $19.98 per share in September 08, and $25.03 per share in December 2007.

The investigation by a law firm “concerns whether Onex Corporation as well as the directors of Res-Care, Inc. will breach their fiduciary duties by not acting in Res-Care, Inc. (NASDAQ:RSCR) shareholders' best interests in connection with the sale process of Res-Care, Inc. , whether the Res-Care Board of Directors will breach their fiduciary duty to Res-Care, Inc. (NASDAQ:RSCR) stockholders by failing to adequately shop the Company prior to entering into an agreement, whether the Board of Directors will breach their fiduciary duties by not seeking a deal that will provide better value for Res-Care, Inc., and whether Onex Corp. will underpay for Res-Care, Inc. (RSCR), thus unlawfully harming RSCR stockholders.”