Shareholder rights firm Robbins Umeda LLP has commenced an investigation into possible breaches of fiduciary duty and other violations of the law by members of the board of directors of MEDTOX Scientific, Inc. (NASDAQ: MTOX) in connection with their efforts to sell the company to Laboratory Corporation of America Holdings ("LabCorp") (NYSE: LH). Concerned shareholders who would like more information about their rights and potential remedies should contact attorney Gregory E. Del Gaizo at (800) 350-6003, firstname.lastname@example.org, or via the shareholder information form on the firm's website.
On June 4, 2012, MEDTOX announced that it had entered into a definitive merger agreement to be acquired by LabCorp. According to the terms of the deal, LabCorp will acquire all outstanding shares of the company through an all-cash transaction. Pursuant to the agreement, MEDTOX shareholders will receive $27.00 in cash for each share of the company they own. The transaction is expected to close during the third quarter of 2012.
Robbins Umeda LLP's investigation focuses on whether MEDTOX's board is undertaking a fair process to obtain maximum value and adequately compensate shareholders in light of the company's recent positive financial results. On April 12, 2012, MEDTOX reported strong operating results for the first quarter of fiscal year 2012 that beat analyst expectations. The company reported revenue of $28.6 million, a 13.9% increase over the $25.1 million in revenue reported during the same quarter of the previous year and above analyst estimates of only $27.5 million. Additionally, MEDTOX reported EPS of $0.17 for the first quarter of 2012, an 88.9% increase over EPS of $0.09 reported during the first quarter of fiscal year 2011 and well above consensus estimates of only $0.125. Furthermore, the company reported that during the first quarter of 2012, net income reached $1.5 million, an impressive 92.3% increase over net income reported in the same quarter of the previous fiscal year.
Given the company's impressive financial results, Robbins Umeda LLP is examining the board's decision to sell MEDTOX now at $27.00 per share rather than allow shareholders to continue to participate in the company's continued success and future growth prospects.
Robbins Umeda LLP attorneys highlight that MEDTOX shareholders have the option to file a class action lawsuit against the company to secure the best possible price for the company's shareholders and the disclosure of material information to shareholders so they can vote on the transaction in an informed manner.
Robbins Umeda LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. For more information, please go to http://www.robbinsumeda.com.
Press release link: http://www.robbinsumeda.com/shareholders-rights-blog/medtox-scientific-inc/
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