MONSEY, N.Y., Aug. 01, 2024 (GLOBE NEWSWIRE) -- The law firm of Wohl & Fruchter LLP is investigating the fairness of the sale of R1 RCM, Inc. (Nasdaq: RCM) (“RCM”) for $14.30 per share in cash to TowerBrook Capital Partners (“TowerBrook”) and Clayton, Dubilier & Rice (“CDR”). The sales price is below the price targets for RCM of virtually every Wall Street analyst (source: TipRanks).
If you remain an RCM shareholder and question the fairness of the price, you may contact our firm at the following link to discuss your legal rights at no charge:
https://wohlfruchter.com/cases/r1-rcm/
Alternatively, you may contact us by phone at 866-833-6245, or via email at alerts@wohlfruchter.com.
Why is there an investigation?
On August 1, 2024, RCM announced that it had agreed to be sold to TowerBrook and CDR for $14.30 per share in cash upon the recommendation of the purportedly independent and disinterested members of a Special Committee of RCM’s board of directors.
As of March 28, 2024, funds affiliated with TowerBrook already owned 35.7% of RCM’s common stock.
Notably, the sales price is below the target prices for RCM of virtually every Wall Street analyst prior to the announcement, including:
- $20.00 set by Charles Rhyee of TD Cowen
- $19.00 set by Sean Dodge of RBC Capital
- $18.00 set by Vikram Kesavabhotla of Robert W. Baird
- $18.00 set by Glen Santangelo of Jefferies
- $17.00 set by Jack Wallace of Guggenheim
- $17.00 set by Michael Cherny of Leerink Partners
“Given the low sales price, we are investigating whether the RCM Board of Directors acted in the best interests of RCM shareholders in approving the sale,” explained Joshua Fruchter, a founding partner of Wohl & Fruchter. “This includes whether the members of the Special Committee were truly independent and disinterested, whether the price agreed upon is fair to RCM shareholders, and whether all material information regarding the transaction has been fully disclosed.”
About Wohl & Fruchter
Wohl & Fruchter LLP has for over a decade been representing investors in litigation arising from fraud and other corporate misconduct, and recovered hundreds of millions of dollars in damages for investors. Please visit our website, www.wohlfruchter.com, to learn more about our Firm, or contact one of our partners.
Contact:
Wohl & Fruchter LLP
Joshua E. Fruchter
Toll Free 866.833.6245
alerts@wohlfruchter.com
www.wohlfruchter.com
