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ResCare, Inc. Securities Litigation
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ResCare, Inc. (NasdaqGM: RSCR) shareholder litigation in connection with
alleged unfair takeover offer
On September 7, 2010, ResCare, Inc. (“ResCare” or the “Company”) announced that
it has agreed to sell the Company to Onex Corporation ("Onex"). Under the terms of
the transaction, ResCare shareholders will receive $13.25 in cash for each share of
ResCare common stock they own for a total transaction value of approximately $384
million. 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. The preferred stock held by Onex votes on an as-converted basis with
common stock.
The investigation concerns whether the ResCare Board of Directors breached their
fiduciary duties to ResCare stockholders by failing to adequately shop the Company
before entering into this transaction and whether Onex is underpaying for ResCare
shares, thus unlawfully harming ResCare stockholders. In particular, at least one
analyst set a price target for ResCare stock at $14.00 per share.
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