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if you purchased shares of Emeritus Corporation (NYSE:ESC) and currently hold any of those NYSE:ESC shares, you have certain options and you should contact the Shareholders Foundation, Inc.
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To have your information reviewed for options and to receive notifications about this case, please send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Lawsuit Overview
April 29, 2014 (Shareholders Foundation) - An investor, who currently holds shares of Emeritus Corporation (NYSE:ESC) filed a lawsuit in effort to halt the takeover of Emeritus Corporation by Brookdale Senior Living Inc.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NYSE:ESC stockholders by agreeing to sell Emeritus Corporation too cheaply via an unfair process to Brookdale Senior Living Inc.
On February 20, 2014, Brookdale Senior Living Inc. (NYSE: BKD) and Emeritus Corporation (NYSE:ESC) announced the signing of a merger agreement. Under the agreement, Emeritus shareholders will receive 0.95 shares of Brookdale common stock in exchange for each share of their Emeritus common stock. Based on the closing price of Brookdale Senior Living Inc.’s common stock on February 19, 2014, Emeritus shareholders will receive approximately $28.42 per share.
However, the plaintiff claims that the offer is too low and undervalues Emeritus Corporation. Indeed, at least one analyst following Emeritus has set a target price of $31.00 per share and NYSE:ESC shares traded in March 2013 as high as $30.42 per share, and following the takeover news NYSE:ESC shares reached $29.97 on February 21, 2014. Furthermore, Emeritus Corporation reported that its annual Total Revenue rose from $898.73 million in 2009 to over $1.56 billion in 2012.
Shares of Emeritus Corporation (NYSE:ESC) closed on April 28, 2014 at $29.65 per share.