The announcement by Allied Healthcare Intl Inc. that it agreed to be acquired by Saga Group Limited prompted an investigation on behalf of investors of Allied Healthcare International Inc. (NASDAQ: AHCI) concerning whether the offer to takeover Allied Healthcare Intl. and the process are unfair to investors of Allied Healthcare Intl (NASDAQ:AHCI) and whether certain of its officers and directors or others breached their fiduciary duties owed investors in Allied Healthcare (NASDAQ:AHCI) shares.

The investigation by a law firm concerns whether the Allied Healthcare Intl Inc, certain of its officers and directors, and/or others breached their fiduciary duties owed to Allied Healthcare Intl (NASDAQ:AHCI) investors in connection with the proposed takeover.

On Friday, July 29, 2011, Allied Healthcare International Inc. (NASDAQ: AHCI) announced that it has entered into an agreement to be acquired by Saga Group Limited for $3.90 per share. The aggregate purchase price for all outstanding shares of Allied Healthcare International Inc common stock, including outstanding options, will be approximately $175 million. Allied Healthcare International Inc said the $3.90 offer represents a premium of 59% to Allied Healthcare International Inc's closing price on July 28, 2011 of $2.45.

Following the takeover announcement shares of Allied Healthcare International (Public, NASDAQ:AHCI) jumped from $2.44 on Thursday to $3.85 on Friday.

However, the investigation concerns whether the Allied Healthcare International Board of Directors undertook an adequate and in particular breached their fiduciary duties to the Allied Healthcare International Inc. (NASDAQ:AHCI) shareholder by failing to adequately shop the Company before entering into the transaction.

The investigation concerns also whether Saga Group Limited would underpay for NASDAQ: AHCI shares, thus unlawfully harming AHCI stockholders. Allied Healthcare Intl financial performance was improving lately. Allied Healthcare was able to increase its 12months Total Revenue from $249.81million reported on Sept. 30, 2009 to $271.08million reported on Sept. 30, 2010. Its first three months Total Revenue rose from $65.53million a year earlier to $69.22million.

A potential securities class action lawsuit would seek to maximize the amount of money and information Allied Healthcare Intl shareholders would receive in a buyout, so the law firm.