Lawsuit: Kindred Healthcare Must Disclose Missing Information Concerning Merger Proposal

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Kindred Healthcare, Inc. and its board of directors are facing a securities lawsuit filed by a stockholder who claims the parties failed to disclose material information in a proxy statement filed in connection with a proposed merger between Kindred and three other companies. According to the complaint, the proxy was missing information concerning Kindred’s financial projections – figures used in its advisors’ valuation analyses and relied upon by the board of directors when recommending that stockholders vote in favor of the transaction. The plaintiff claims the proposal “appears inadequate in light of the Company’s recent financial performance and prospects for future growth,” arguing that stockholders should be provided with all the information they need to determine whether the deal will “adequately compensate” them.