Dental News - U.S. dental acquisition comes under legal fire

Dental Tribune International

Wed. 9 November 2011

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NEW YORK CITY, N.Y., USA: Multiple U.S. law firms are seeking shareholders of American Dental Partners in order to investigate claims against the company's board of directors for having breached fiduciary duties and other laws by approving an acquisition through New York private equity investor JLL Partners. On Monday, it was reported that JLL had acquired the NASDAQ-listed practice management company based in Wakefield, Mass., for $19 per share in cash or a total sum of $398 million.

The merger agreement between both companies was preceded by recommendations of a special committee comprising members of ADPI's Board of Directors. In a press release, law firm Weiss & Lurie said that investigations are underway to determine whether the board acted in the best interests of its shareholders in approving the transaction. Representatives of Levi & Korsinsky, another New York City law firm, said that concerns have been raised whether JLL is underpaying for ADPI shares, which would harm current stockholders of the company.

ADPI shares closed up 79 per cent, or 8.20 cents, at 18.58 on Monday.

The company currently provides services, facilities and staff to more than 25 dental group practices throughout the U.S., including Fusion Dental, a multi-specialty dental group with several offices in Maryland and Virginia.

The acquisition is the first dental-related investment by JLL, which has shares in other healthcare and electronic payment businesses.

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