Investors who purchased shares of AdCare Health Systems, Inc. (NYSEAMEX:ADK)
The investigation by a law firm concerns whether certain AdCare Health Systems, Inc. officers and directors breached their fiduciary duties and caused damage to the company and its shareholders by, among other things, failing to implement adequate internal controls.
In a March 13, 2013 filing, AdCare Health Systems, Inc. announced that its Audit Committee had determined that its previously issued financial statements for the quarters ended March 31, 2012, June 30, 2012 and September 30, 2012 should no longer be relied upon.
On April 16, 2013, AdCare Health Systems, Inc. (NYSE MKT: ADK) announced that the filing of the Company's Annual Report on Form 10-K for the year ended December 31, 2012, and the previously announced restatements of the Company's financial statements for the quarters ended March 31, 2012, June 30, 2012 and September 30, 2012, will be delayed beyond April 16, 2013 (the extended filing deadline for the Form 10-K).
Then on April 18, 2013, AdCare Health Systems, Inc. (NYSE MKT: ADK) confirmed that Brogdon Family, LLC, an affiliate of Christopher Brogdon , AdCare Health Systems' Vice Chairman and beneficial owner of greater than 10% of the AdCare common stock, informed the AdCare Health Systems Board of Directors on April 17, 2013 of its interest in commencing an unsolicited tender offer to acquire, at a price of $8.00 per share, such number of shares of AdCare Health Systems common stock that would result in Mr. Brogdon beneficially owning at least 55%, but no more than 75%, of the outstanding shares of AdCare common stock (the "Tender Offer").
Shares of AdCare Health Systems closed on July 19, 2013, at $4.42 per share.
Those who purchased shares of AdCare Health Systems, Inc. (NYSEAMEX:ADK)