In May 2011, Cohen Milstein Sellers & Toll PLLC reached a settlement in shareholder litigation challenging the acquisition of healthcare provider RehabCare Group, Inc. by Kindred Healthcare, Inc.
As part of the settlement, RehabCare and Kindred agreed to make additional disclosures regarding the process leading up to the merger, including the role of Citigroup Global Markets Inc., which advised RehabCare in the transaction. These disclosures are contained in an 8-K filed with the SEC on May 12, 2011. RehabCare and Kindred also agreed to modify certain features of the merger agreement, which, as alleged in the Consolidated and Amended Class Action Complaint, contained allegedly restrictive deal protection devices that precluded more attractive bids. Subject to final approval of the settlement, and the merger closing, RehabCare also agreed to make a $2.5 million payment for the benefit of the class of RehabCare shareholders.
Cohen Milstein Sellers & Toll PLLC served as plaintiffs' Co-Lead Counsel.