We are investigating the fairness of the sale of R1 RCM, Inc. (Nasdaq: RCM) (“RCM”) for $14.30 per share in cash to TowerBrook Capital Partners (“TowerBrook”) and Clayton, Dubilier & Rice (“CDR”). The sales price is below the price targets for RCM of virtually every Wall Street analyst (source: TipRanks).
If you remain an RCM shareholder and question the fairness of the price, you may contact our firm to discuss your legal rights at no charge by completing and submitting the form below.
Why is there an investigation?
On August 1, 2024, RCM announced that it had agreed to be sold to TowerBrook and CDR for $14.30 per share in cash upon the recommendation of the purportedly independent and disinterested members of a Special Committee of RCM’s board of directors.
As of March 28, 2024, funds affiliated with TowerBrook already owned 35.7% of RCM’s common stock.
Notably, the sales price is below the target prices for RCM of virtually every Wall Street analyst prior to the announcement, including:
- $20.00 set by Charles Rhyee of TD Cowen
- $19.00 set by Sean Dodge of RBC Capital
- $18.00 set by Vikram Kesavabhotla of Robert W. Baird
- $18.00 set by Glen Santangelo of Jefferies
- $17.00 set by Jack Wallace of Guggenheim
- $17.00 set by Michael Cherny of Leerink Partners
“Given the low sales price, we are investigating whether the RCM Board of Directors acted in the best interests of RCM shareholders in approving the sale,” explained Joshua Fruchter, a founding partner of Wohl & Fruchter. “This includes whether the members of the Special Committee were truly independent and disinterested, whether the price agreed upon is fair to RCM shareholders, and whether all material information regarding the transaction has been fully disclosed.”