FPIC Insurance Group, Inc. Takeover under Investor Investigation

May 25, 2011 - PRLog -- Following the announcement by FPIC Insurance Group that its board of directors agreed to a takeover of FPIC Insurance Group, Inc. by The Doctors Company an investigation on behalf of investors of FPIC Insurance Group, Inc.  was announced concerning whether the proposed acquisition is unfair to FPIC stockholders and whether certain directors and officers breached their fiduciary duties.

If you purchased shares of FPIC Insurance Group, Inc. (NASDAQ FPIC) and currently continue to hold those NASDAQ-FPIC shares, and/or if you have any information relating the investigation, you have certain options and you should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

The investigation by a law firm concerns whether certain directors and officers at FPIC Insurance Group, Inc. or others breached their fiduciary duties in connection the proposed takeover.

On Tuesday, May 24, 2011, before the market opened, FPIC Insurance Group, Inc.  and The Doctors Company announced that they have entered into an agreement pursuant to which The Doctors Company will acquire FPIC Insurance Group for $42.00 per FPIC share in cash, representing an aggregate purchase price of approximately $362 million.

FPIC Insurance Group said the $42.00 per share price represents a premium of approximately 31 percent over the $32.10 per share closing price of FPIC on May 23, 2011, the last trading day prior to today's announcement.
Indeed, following the takeover announcement shares of FPIC Insurance Group, Inc. jumped from $32.36 on Monday to $41.50 on Tuesday.

However, FPIC stock traded as recently as April 1, 2011 as high as $39.40 per share, leaving FPIC investors with only a meager premium.

Therefore the investigation monitors the proposed transaction and concerns whether the FPIC Insurance Group Board of Directors undertook an adequate and fair sales process to obtain fair and maximized consideration for all shareholders of FPIC Insurance Group, Inc. (Public, NASDAQ-FPIC) and breached their fiduciary duties to FPIC Insurance Group (FPIC) shareholder by failing to adequately shop the Company before entering into the transaction.

The investigation concerns also whether the Doctors Company would underpay for NASDAQ-FPIC shares, thus unlawfully harming FPIC stockholders.

FPIC Insurance Group reported over the past four years relatively consistent annual 12months Total Revenue ranging from $187.30million to $230.02million. FPIC Insurance Group, Inc. was able to increase its annual Revenue from $187.30million in 2009 to $197.71million in 2010.

A potential securities class action lawsuit would seek to maximize the amount of money and information FPIC shareholders would receive in a buyout, so the law firm.

Those who purchased shares of FPIC Insurance Group, Inc. (Public, NASDAQ-FPIC) and currently continue to hold those NASDAQ-FPIC shares, and/or those who have any information relating the investigation, have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

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The Shareholders Foundation, Inc. is a professional portfolio monitoring service and an investor advocacy group. We do research related to shareholder issues and inform investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. At Shareholders Foundation, Inc. we are in contact with a large number of shareholders. We believe that together we can combine the interests of many investors, and use the size of our interest as leverage against the giant corporations. We offer help, support, and assistance for every shareholder. We help investors find answers to their questions and equitable solutions to their problems. The Shareholders Foundation, Inc. is not a law firm. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.