LHC shareholder sues over proposed Optum merger

An LHC Group shareholder is suing the company and its board of directors over the proposed merger with UnitedHealth Group’s Optum unit, Lawstreet Media reported May 9. 

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Optum announced March 29 that a deal had been reached to purchase the Lafayette, La.-based home-health firm. The $5.4 billion deal is expected to close in the second half of 2022. 

A month after the announcement, LHC filed a preliminary proxy statement with the SEC regarding the merger, according to Lawstreet Media. The proxy statement recommended LHC shareholders vote in favor of the merger, but the lawsuit alleges the statement omits or misrepresents pertinent information. 

The lawsuit alleges that unless the proxy statement is revised to include all material information, LHC shareholders will be forced to make a decision without full disclosure, according to the report. 

The shareholder alleges LHC violated the Securities Exchange Act and is seeking to halt the transaction from proceeding until all material information is present, according to the report.

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