Investigation centers around Chindex International

Shareholders of a Chinese health care company recently informed a law office that there may be issues with the organization's pending purchase. There may be a class action claim in the future due to this situation.

Law office Robbins Arroyo, LLP, noted that it is investigating the purchase of Chindex International, Inc., by Chindex CEO Roberta Lipson, a TPG affiliate and a Shanghai Fosun Pharmaceutical Group, Co., Ltd., affiliate. The deal was agreed on Feb. 17, 2014, and would give those who own stock in Chindex International approximately $19.50 in cash per share owned.

The deal would give the company a premium on the deal of 13.7 percent from the company's closing price on Feb. 14, 2014. Despite this, it was notably lower than nearly half of similar deals in the past three years.

Chindex noted on Nov. 11, 2013, that it had a significant boost in its financial results during the third quarter of that year. That three-month period had the most quarterly revenue in its history, as revenue for health care services jumped 16 percent from the same quarter in 2012.

Overall, the company's board of directors may have sold the company at a bad time, as it prevents shareholders from being a part of its further success, as well as its potential growth.

It is possible that shareholders can speak with the law firm to learn about the possibility of a class action lawsuit, as well as have questions answered regarding their rights and the investigation as a whole. Darnell Donahue is the best person to speak with, and he can be reached by telephone or email. The law office's website also has further information for shareholders.

Second investigation commences
Another law firm is looking into claims that the company's board of directors breached fiduciary duty. Like the aforementioned lawsuit, there is a possibility for this to also become a class action lawsuit.

Pomerantz, LLP, recently began an investigation of Chindex International due to many of the aforementioned claims. It also noted that many measurements such as revenue, book value and total assets were notably lower than other similar purchases.

For any shareholders who are looking to learn more about the pending purchase and the investigation, it is possible to speak with the law firm. Robert Willoughby can be reached by email or telephone.