An investigation on behalf of investors, who currently hold shares of Cotiviti Holdings, Inc. (NYSE: COTV), was announced concerning whether the takeover of Cotiviti Holdings, Inc. is unfair to NYSE: COTV stockholders.

The investigation by a law firm concerns whether certain officers and directors of Cotiviti Holdings, Inc. breached their fiduciary duties owed to NYSE: COTV investors in connection with the proposed acquisition.

Atlanta, GA based Cotiviti Holdings, Inc., through its subsidiaries, provides analytics-driven payment accuracy and spend management solutions primarily for the healthcare sector in the United States, Canada, the United Kingdom, and India. On June 19, 2018, Cotiviti Holdings, Inc. (NYSE: COTV) and Verscend Technologies, Inc., a portfolio company of Veritas Capital and a leader in data-driven healthcare solutions, announced that they have entered into an agreement whereby Verscend has agreed to acquire Cotiviti for $4.9 billion in cash.

Under the terms of the agreement, Cotiviti Holdings, Inc. (NYSE: COTV) shareholders will receive $44.75 in cash per share of Cotiviti common stock, and Verscend will assume all of Cotivitis outstanding debt, resulting in an enterprise value of approximately $4.9 billion.

However, given that at least one analyst has set the high target price for NYSE: COTV shares at $45.00 per share, the investigation concerns whether the offer is unfair to Cotiviti Holdings, Inc. (NYSE: COTV stockholders. More specifically, the investigation concerns whether the Cotiviti Holdings, Inc. (NYSE: COTV Board of Directors undertook an adequate sales process, adequately shopped the company before entering into the transaction, maximized shareholder value by negotiating the best price, and acted in the shareholders' best interests in connection with the proposed sale.

Cotiviti Holdings, Inc reported that its annual Total Revenue rose from $625.16 million in 2016 to $678.66 million in 2017 and that its net Income increased from $48.85 million in 2016 to $138.2 million in 2017.

Shares of Cotiviti Holdings, Inc. (NYSE: COTV) closed on June 22, 2018 at $44.19 per share.