Rigrodsky & Long, P.A. Investigates Buyout of Kinetic Concepts, Inc. for Shareholders

Rigrodsky & Long, P.A. announces that it is investigating potential claims against the board of directors of Kinetic Concepts, Inc. (“KCI” or the “Company”) (NYSE: KCI) concerning possible breaches of fiduciary duty and other violations of law related to the Company’s entry into an agreement to be acquired and taken private by a consortium comprised of funds advised by Apax Partners, together with controlled affiliates of Canada Pension Plan Investment Board and the Public Sector Pension Investment Board (collectively, the “Consortium”) in a transaction valued at $6.3 billion (including KCI’s outstanding debt).

Under the proposed agreement, KCI shareholders will receive $68.50 per share in cash for every share of KCI common stock they hold.  James R. Leininger, founder of KCI and chairman emeritus, and certain shareholder parties related to or affiliated with him, which collectively hold approximately 11% of the Company’s outstanding shares, have entered into a voting agreement with the Consortium to vote their shares in favor of the transaction.

The investigation concerns whether KCI’s board of directors adequately shopped the Company to obtain the best price possible for KCI’s shareholders before entering into the agreement with the Consortium.  Indeed, according to Yahoo! Finance, at least one analyst has set a $70.00 per share target for KCI stock.

Moreover, as recent as April 26, 2011, KCI issued a press release wherein it announced its financial results for the first quarter of 2011.  The Company reported an increase in total revenue of 3% year-over-year and an increase in net earnings of 30% year-over-year.  Catherine Burzik, President and CEO of KCI commented: “I am pleased with our first quarter performance, which demonstrated strength in biologics and in our core V.A.C.^® Therapy franchise, particularly in the important U.S. and Japan regions[.]…  We continue to execute on our strategic vision as we aggressively introduce new products and develop our business in new geographies.”

Rigrodsky & Long, P.A., with offices in Wilmington, Delaware and Garden City, New York, regularly litigates securities class, derivative and direct actions, shareholder rights litigation and corporate governance litigation, including claims for breach of fiduciary duty and proxy violations in the Delaware Court of Chancery and in state and federal courts throughout the United States.

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