NEW YORK, June 26, 2014 (GLOBE NEWSWIRE) -- The fairness of the proposed acquisition of Medical Action Industries Inc. ("MDCI" or the "Company") by Owens & Minor, Inc. ("OMI") is the subject of an examination by WeissLaw LLP, a national class action, shareholder rights law firm. The examination is focusing on possible breaches of fiduciary duty and other violations of law by the Board of Directors of MDCI for agreeing to sell the Company to OMI. On June 25, 2014, the companies jointly announced they had reached a definitive agreement for OMI to acquire all outstanding shares of the Company for $13.80 per common share, for a total equity value of $208 million.
WeissLaw LLP is investigating whether MDCI's Board acted to maximize shareholder value prior to entering into the agreement with OMI. Notably, prior to the announcement of the deal, the Company announced positive financial results. On June 11, 2014, MDCI reported gross profits of $50.8 million for the fiscal year ended March 31, 2014, representing an increase of 17.9% over the previous year.
Given these facts, WeissLaw is investigating the Board of Directors' decision to sell MDCI and whether the Board of Directors acted in the best interests of MDCI's public shareholders by actively shopping the Company to maximize shareholder value prior to entering into the agreement with OMI. If you own MDCI shares and would like more information about your rights or our investigation, please contact Joshua Rubin or Kelly Keenan either by telephone at (888) 593-4771 or by email at stockinfo@weisslawllp.com.
The firm is also in the process of investigations on behalf of shareholders of PLX Technology Inc., Integrys Energy Group, Measurement Specialties Inc., and tw telecom Inc.
WeissLaw LLP has litigated hundreds of stockholder class and derivative actions for violations of corporate and fiduciary duties. We have recovered over a billion dollars for defrauded clients and obtained important corporate governance relief in many of these cases. If you have information or would like legal advice concerning possible corporate wrongdoing (including insider trading, waste of corporate assets, accounting fraud, or materially misleading information), consumer fraud (including false advertising, defective products, or other deceptive business practices), or anti-trust violations, please email us at stockinfo@weisslawllp.com or fill out the form on our website, http://www.weisslawllp.com/contact/report_fraud/.
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