Have We Got a Deal for You
Have We Got a Deal for You
CHICAGO (CN) - The board of directors of a multimillion-dollar prescription mail order company sold all its assets to one director for $10, and investors got nothing for their shares, stockholders claim in a derivative complaint.
Lead plaintiff Jeffrey S. Reiniche sued Health Alliance Holdings, HA Holdings, HA Acquisition, venture capital firms MTS Health Alliance and Ashcroft Associates, EBM Ventures, and eight corporate officers in Cook County Court: Andrew Paul, Curtis Lane, Kevin Swan, James Kelly, Jamie Martin, Allen Palles, John Hennessy, and E.B. Martin Jr.
"This action arises from the unlawful conduct of the controlling directors of a nonpublic corporation, HA Holdings, Inc, led by Andrew Paul, one of those directors who was also the principal in New York based venture capital firms which were controlling shareholders of Holdings," the complaint states.
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"In November 2004, Holdings' directors approved the sale of all of Holdings' assets to an entity led by a fellow director and owned and controlled by that director's husband," the complaint states. "The sale price was a mere $10.00, although Holdings could have sold its assets for tens of millions of dollars.
"Plaintiffs are shareholders of Health Alliance Holdings, Inc., a corporation which owned substantial stock in Holdings.
"Because Holdings' assets were sold for a mere $10.00, plaintiffs and HAH received nothing for their investment in Holdings."
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