November 30, 2015 (Shareholders Foundation) - An investor who currently holds shares of Liberator Medical Holdings Inc (NYSEMKT:LBMH), filed a lawsuit in effort to halt the proposed takeover of Liberator Medical Holdings Inc by C. R. Bard, Inc. for $3.35 per share.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NYSEMKT:LBMH stockholders by agreeing to sell Liberator Medical Holdings Inc too cheaply via an unfair process to C. R. Bard, Inc.

On November 20, 2015, Liberator Medical Holdings Inc (NYSEMKT:LBMH) announced that it has entered into an agreement to be acquired by C. R. Bard, Inc. (NYSE: BCR), for a cash purchase price of $3.35 per fully-diluted share, or approximately $181 million in the aggregate.

However, the plaintiff claims that the proposed consideration NYSEMKT:LBMH shareholders will receive is grossly inadequate and undervalues Liberator Medical Holdings Inc. Indeed, at least one analyst has set the high target price for NYSEMKT:LBMH shares at $8.00 per share and shares of Liberator Medical Holdings Inc traded in the open market as recently as $3.83 per share as recently as February 2015. Furthermore, Liberator Medical Holdings Inc reported that its Total Revenue rose from $52.70 million for the 12 months period that ended on September 30, 2011 to $74.57 million for the 12 months period that ended on September 30, 2014 and that its Net Income for those respective time periods increased from $0.26 million to $7.60 million. In early 2014 shares of Liberator Medical Holdings Inc (NYSEMKT:LBMH) reached as high as $5.94 per share

In addition, the plaintiff alleges that the process is also unfair to NYSEMKT:LBMH stockholders. Indeed, certain shareholders owning approximately 38% of Liberator Medical Holdings Inc's common stock have executed a voting agreement to vote in favor of the transaction.