An investor, who currently holds shares of Civitas Solutions, Inc. (NYSE: CIVI), filed a lawsuit against the takeover of Civitas Solutions, Inc.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NYSE: CIVI stockholders by agreeing to sell Civitas Solutions, Inc. cheaply via an unfair process.
Boston, MA based Civitas Solutions, Inc. provides home- and community-based health and human services to must-serve individuals with intellectual, developmental, behavioral, and/or medically complex challenges in the United States. On December 18, 2018, Civitas Solutions, Inc. (NYSE: CIVI) announced that it has entered into a merger agreement to be acquired by funds advised by Centerbridge Partners, L.P. (“Centerbridge”). Under the terms of the agreement, Centerbridge Partners, L.P. will acquire all outstanding shares of Civitas common stock for $17.75 in cash per share of Civitas common stock, resulting in an enterprise value of approximately $1.4 billion. The offer price represents a 27% premium to the 30-day volume-weighted average price as of December 18, 2018.
However, plaintiff claims that the proposed consideration NYSE: CIVI shareholders will receive is grossly inadequate and undervalues Civitas Solutions. Indeed, given that at least one analyst has set the high target price for NYSE: CIVI at $18 per share. In addition, the plaintiff alleges that the process is also unfair NYSE: CIVI stockholders