Rigrodsky & Long, P.A. Investigates Prospect Medical Holdings, Inc. Buyout

Rigrodsky & Long, P.A. announces that it is investigating potential claims against the board of directors of Prospect Medical Holdings, Inc. (“Prospect Medical” or the “Company”) (Nasdaq: PZZ) 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 Leonard Green & Partners, L.P. (“Leonard Green”) in a transaction with a value of approximately $363 million, including the assumption of approximately $158 million of net debt.

Under the proposed agreement, Prospect Medical shareholders will receive $8.50 cash for each share of Prospect Medical common stock.  The investigation concerns whether Prospect Medical’s board of directors failed to adequately shop the Company and obtain the best price possible for Prospect Medical’s shareholders before entering into the agreement with Leonard Green.  Indeed, according to Yahoo! Finance, at least one analyst has set a price target of $16.20 per share for Prospect Medical stock.

In addition, some directors and officers of Prospect Medical that currently own in the aggregate approximately 10.4 million shares of Prospect Medical’s outstanding common stock (representing nearly 50% of Prospect Medical’s outstanding shares) have entered into a voting agreement in which they have agreed to vote all of their Prospect Medical shares in favor of the adoption of the merger agreement.  These stockholders also have agreed to exchange approximately 6.2 million of their Prospect Medical shares for equity interests in the sponsored purchasing entity in lieu of their receipt of the cash merger consideration for those shares.

If you own the common stock of Prospect Medical and purchased your shares before August 16, 2010, if you have information or would like to learn more about these claims, or if you wish to discuss these matters or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Seth D. Rigrodsky, Esquire or Noah R. Wortman, Case Development Director, of Rigrodsky & Long, P.A., 919 N. Market Street, Suite 980, Wilmington, Delaware, by telephone at (888) 969-4242, or by e-mail to info@rigrodskylong.com.

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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