This is a mess to say the least as the investors from Strategic Turnaround Equity Partners are suing Untied American Healthcare too. Last month United American Healthcare Corporation announced the acquisition of Pulse Systems which provides contract manufacturing services to the medical devices companies. It looks like the investment partners are not getting along with the board and management of United American. One of the articles states there has not been a share holder meeting in over 600 days, so that could be a touchy subject.
From the website:
“United American Healthcare Corporation (UAHC) is a full-service healthcare management company, pioneering the delivery of healthcare services to Medicaid recipients since 1985. UAHC owns and manages UAHC Health Plan in western Tennessee, including Memphis”
Now when I clicked to get more information on their health plan management plan, below is what I received, they care but are not there it appears. I wonder how many consumers and patients are enrolled here?
Not too long ago I made another post urging consumers to pay attention to the grouping and acquisitions of companies both by private equity firms and insurance companies sold on the open market, as this is going to get a bit crazy. United just bought a company that consults with medical devices and then from another side runs an HMO insurance firm. If you read the link below you will find a number of examples to be aware of.
Consumer Watchdog Warns Sebelius on Health Insurers – Good Reason for This as Insurer Subsidiaries Are in The Game to Play Just As Private Equity Groups Diversify and Collaborate Holdings
Again, it appears investors and the board are not getting along and we have a major power struggle here with the value of the stock at hand and up for controversy. There will be more actions like this in the future as more disagree to agree and as consumers, we will be stuck in the middle. As investors take over hospitals and try to run the actual medical/hospital side of the businesses it’s going to be an interesting show down as in this case, the investors are wanting their money. BD
United American Healthcare Corporation Announces Lawsuit Against Strategic Turnaround Equity Partners and Postponement of Annual Meeting of Shareholders
United American Healthcare Corporation (NASDAQ:UAHC) announced it intends over the next several days to file a lawsuit for violations of federal securities laws against Strategic Turnaround Equity Partners, LP (Cayman), a Cayman Islands limited partnership and UAHC director Bruce Galloway, and their associates, and for violations of Michigan law against Mr. Galloway in the United States District Court or the Eastern District of Michigan.
"Our Company has determined that Strategic Equity Partners and the other participants in its proxy solicitation, in violation of law and Mr. Galloway's fiduciary duties, have engaged in an outrageous campaign to disseminate false and misleading information about UAHC, the Board of Directors and management," said William Brooks, CEO of United American Healthcare. "From the outset of this proxy contest, we have endeavored to take the high road, making our case to shareholders based on facts and reason, without resorting to the sort of mudslinging taken up by the dissidents.
Unfortunately, our opponents have created an environment of misinformation designed to obscure and denigrate the highly competent work of our Board and management team, and mislead investors as they vote on the future direction of our Company. These actions constitute a betrayal by Mr. Galloway and have caused investor confusion that has necessitated postponement of the annual meeting."
Effective immediately, Galloway has been removed from the Finance and Audit Committee, and the Company has postponed its upcoming Annual Shareholders' Meeting scheduled for Tuesday, June 29, 2010. The Company will reschedule the Annual Shareholders' Meeting and set a revised meeting date and record date for shareholders eligible to vote at the meeting as soon as possible.