Rigrodsky & Long, P.A. Investigates Medical Nutrition USA, Inc. Buyout
June 11 2010 - 3:33PM
Business Wire
Rigrodsky & Long, P.A. announces that it is investigating
potential claims against the board of directors of Medical
Nutrition USA, Inc. (“Medical Nutrition USA” or the “Company”)
(Nasdaq:MDNU) concerning possible breaches of fiduciary duty and
other violations of law related to the Company’s entry into an
agreement to be acquired by Danone North America, Inc. (“Danone”)
in a transaction valued at approximately $62.3 million.
(http://www.rigrodskylong.com/news/MedicalNutritionUSA-MDNU).
Under the proposed agreement, Danone will acquire all the
outstanding shares of Medical Nutrition USA for $4.00 per share in
cash. The investigation concerns whether Medical Nutrition USA’s
board of directors failed to adequately shop the Company and obtain
the best price possible for Medical Nutrition USA’s shareholders
before entering into the agreement with Danone. Moreover, holders
of shares of Medical Nutrition USA common stock constituting a
majority of the Company’s outstanding shares have executed and
delivered to Medical Nutrition USA written consents adopting the
merger agreement, as a result of which the required shareholder
approval of the merger has been obtained and no further action by
the Company’s shareholders is required in connection with the
transaction.
As recent as June 3, 2010, the Company reported its first
quarter 2010 financial results wherein Medical Nutrition USA
reported a 30% sales increase for the quarter. Indeed, the
Company’s Chairman and CEO, Frank A. Newman commented: “We are very
pleased with the Company's results for the quarter[.] Performance
was strong across the board -- particularly for branded products,
sales of which increased over 35% during the period. Our gains in
the quarter reflect the continued addition of new nursing homes and
hospitals to our end-user community as well as higher consumption
within existing facilities. We feel good about our continuing
momentum and direction for the year.” Additionally, according to
Yahoo! Finance, at least one analyst has set a price target of
$8.25 per share.
If you own the common stock of Medical Nutrition USA and
purchased your shares before June 11, 2010, if you have information
or would like to learn more about these claims, or if you wish to
discuss these matters or have any questions concerning this
announcement or your rights or interests with respect to these
matters, please contact Seth D. Rigrodsky, Esquire or Noah R.
Wortman, Case Development Director, of Rigrodsky & Long, P.A.,
919 N. Market Street, Suite 980, Wilmington, Delaware, by telephone
at (888) 969-4242, or by e-mail to info@rigrodskylong.com.
Rigrodsky & Long, P.A., with offices in Wilmington, Delaware
and Garden City, New York, regularly litigates securities class,
derivative and direct actions, shareholder rights litigation and
corporate governance litigation, including claims for breach of
fiduciary duty and proxy violations in the Delaware Court of
Chancery and in state and federal courts throughout the United
States.
Attorney advertising. Prior results do not guarantee a similar
outcome.
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