Rigrodsky & Long, P.A. announces that it is investigating potential claims against the board of directors of HealthGrades, Inc. (“HealthGrades” or the “Company”) (Nasdaq: HGRD) 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 an affiliate of Vestar Capital Partners V, L.P. (“Vestar”) in a transaction valued at approximately $294 million.

Are you affected?

• Do you own HealthGrades, Inc. common stock?
• Did you purchase your shares before July 28, 2010?
• Do you feel Vestar Capital Partners V, L.P.'s offer is unfair?
• Do you want to discuss your rights?

Rigrodsky & Long, P.A. announces that it is investigating potential claims against the board of directors of HealthGrades, Inc. (“HealthGrades” or the “Company”) (Nasdaq: HGRD) 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 an affiliate of Vestar Capital Partners V, L.P. (“Vestar”) in a transaction valued at approximately $294 million.

Under the proposed agreement, Vestar will make a cash tender offer of $8.20 in cash for each share of HealthGrades common stock outstanding.  In addition, executive officers of HealthGrades beneficially owning approximately 21% of HealthGrades’ fully diluted shares have entered into agreements to support the transaction and to tender or otherwise sell shares to Vestar.  The investigation concerns whether HealthGrades’ board of directors failed to adequately shop the Company and obtain the best price possible for HealthGrades’ shareholders before entering into the agreement with Vestar.  Indeed, according to Yahoo! Finance, at least one analyst has set a price target of $9.00 per share for HealthGrades stock.

If you own the common stock of HealthGrades and purchased your shares before July 28, 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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