Kindred Healthcare, Executives Sued Over Proxy Statement Potentially Missing Information

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Kindred Healthcare, Inc. and its board of directors are on the receiving end of a proposed class action that alleges violations of the Securities Exchange Act of 1934. The defendants allegedly filed a proxy statement regarding a potential merger with three other companies that the plaintiff, a Kindred stockholder, claims was incomplete and misleading. According to the complaint, the statement was missing information concerning Kindred’s financial projections; figures used in the valuation analyses performed by its financial advisors; the background of the transaction; and board members’ potential conflicts of interest.

Specifically, the suit argues the defendants neglected to disclose whether other potential buyers were precluded from submitting superior proposals due to certain provisions of their confidentiality agreements. On top of that, the complaint alleges, the company failed to indicate whether the board engaged in discussions of future employment during the sale process that could have influenced its decision to support the transaction.