Kindred shareholder sues to halt $4.1B deal with Humana, two equity firms: 5 things to know

A shareholder of Louisville, Ky.-based Kindred Healthcare filed a lawsuit to stop a proposed deal between Kindred, Humana and two equity firms, WDRB reports.

Here are five things to know about the deal and the lawsuit.

1. Mazy Sehrgosha filed the lawsuit in Delaware federal court Thursday. The plaintiff seeks class-action status for the lawsuit, which alleges a 300-page document Kindred submitted last week explaining why its board of directors favors the deal presents "incomplete and misleading" information to investors, the report states.

2. The lawsuit also claims the $9-per-share price is "inadequate." A Kindred spokesperson did not immediately respond to WDRB's request for comment.

3. In December 2017, Humana and two private equity firms signed a definitive agreement to acquire Kindred for $4.1 billion in cash including assumption of debt. Shortly after, Brigade Capital Management, a top Kindred shareholder, called the deal "disappointing and grossly inadequate."

4. Last week Kindred filed a proxy statement with the U.S. Securities and Exchange Commission, urging stockholders to approve the deal.

5. Kindred and its potential acquirers hope the deal will close this year.

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