Recent Security Class Actions
R1 RCM Inc. Common Stock (NASDAQ: RCM)
3 Days left to seek lead plaintiff status.
The complaint alleges TCP-ASC ACHI Series LLLP ("TA") pulled the levers of its control over RI to channel the Company, Special Committee, and New Mountain into TA's preferred process and outcome. TA's repeated threats reminding the Special Committee of the "utmost importance of the relationship between [RI] and Ascension" won TA a closed auction; a transaction free from protection for the Company's minority stockholders; and a contest against a single other bidder, New Mountain, who desperately wanted to "mitigate risk" around RI's customer relationship with Ascension. TA 's success in forcing this outcome deprived the Company's stockholders of both RI's value as a standalone company and the price they could have obtained in an open and fair auction. Meanwhile, the Special Committee invited actors harboring deep conflicts with the Company's acquirers into its process and deliberations, including Flanagan, who used the sale process to negotiate his own employment in the post¬ acquisition company, and senior members of the Barclays deal team, who owed significant portions of their income over the preceding three years to TowerBrook, Ascension, New Mountain, and Flanagan. As a result, Flanagan was handed the opportunity to tilt the sale process toward his preferred bidder, transmuting his influence as RI 's former CEO and a then-current member of its Board into a highly lucrative role as the post-acquisition company's CEO.
