Investigation Overview
After inVentiv Health Inc. announced to be acquired by Thomas H. Lee Partners, L.P. an investigation on behalf of current investors in inVentiv Health Inc. (NASDAQ:VTIV) concerning shareholder claims over possible breaches of fiduciary duty was announced.
The investigation by a law firm focuses on potential breaches of fiduciary duty and other violations of state law by the Board of Directors of inVentiv Health Inc. arising out of their attempt to sell inVentiv Health Inc. (NASDAQ:VTIV) to Thomas H. Lee Partners, L.P. inVentiv Health Inc., located in Somerset, NJ, is a provider of value-added services to the pharmaceutical, life sciences and healthcare industries. inVentiv Health Inc. reported in 2007 Total Revenue of $977.30million, in 2008 $1.11981billion, and in 2009 $1.07196billion.
inVentiv Health, Inc. (NASDAQ: VTIV) announced on Thursday, May 6, 2010, that it has entered into an agreement to be acquired by Thomas H. Lee Partners, L.P. (THL) for approximately $1.1 billion under which inVentiv shareholders will receive $26.00 in cash for each share of VTIV common stock they hold. According to inventive its board of directors approved the agreement and the offer represents a 52% premium over the $17.15 closing stock price on March 25, 2010, the day before inVentiv announced that it had been approached by financial investors regarding a potential transaction and had formed a special committee to engage financial advisors and evaluate possible courses of action.
But shares of inVentiv Health Inc. traded in after hours after the takeover announcement at $25.30 per share. VTIV shares traded on the same day at $25.11 per share, and on Wednesday 05,2010 at $24.45 per share. VTIV shares traded in 2008 over $35 per share, and in 2007 over $46 per share.
The investigation by a law firm concerns whether the inVentiv HealthBoard of Directors breached their fiduciary duties to inVentiv Health Inc. (NASDAQ:VTIV) stockholders by failing to adequately shop the Company prior to entering into the agreement, whether the Board of Directors breached their fiduciary duties by not seeking a deal that would provide better value inVentiv Health Inc. (NASDAQ:VTIV)., and whether Thomas H. Lee Partners, L.P. is underpaying for inVentiv Health Inc. (Public, NASDAQ:VTIV)), thus unlawfully harming VTIV stockholders.