Stock owner alleges WebMD statement submitted to SEC is false and misleading

By Wadi Reformado | Aug 23, 2017

NEW YORK (Legal Newsline) – A stock owner of WebMD is seeking to enjoin a proposed transaction.

Robert Berg filed a complaint on behalf of all others similarly situated on Aug. 11 in the U.S. District Court for the Southern District of New York against WebMD Health Corp., Martin J. Wygod, Steven L. Zatz, Mark J. Adler, Ian G. Banwell, et al. citing the Securities Exchange Act of 1934.

According to the complaint, on July 24 the defendants announced a proposed transaction for WebMD Health Corp. to be acquired by MH Sub I LLC and its subsidiary Diagnosis Merger Sub Inc. The suit states the defendants filed a solicitation/recommendation statement with the Securities and Exchange Commission in connection with the transaction. The plaintiff alleges this statement omits material information regarding the transaction and makes it false and misleading.

The plaintiff holds the defendants responsible because the defendants allegedly failed to disclose certain information to the plaintiff regarding the proposed transaction.

The plaintiff requests a trial by jury and seeks enjoin the defendants, all legal fees and any other relief as the court deems just. He is represented by Timothy J. MacFall of Rigrodsky & Long PA in Garden City, New York.

U.S. District Court for the Southern District of New York case number 1:17-cv-06064-UA

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