NORFOLK, Va.- LAWFUEL – US Law & Business News–FHC Health Systems, Inc. filed a motion earlier today in the Court of Chancery of the State of Delaware seeking to expedite its previously announced lawsuit to compel Psychiatric Solutions, Inc. (NASDAQ: PSYS) to complete the acquisition of FHC’s Alternative Behavioral Systems (ABS) business.
The motion alleges that PSI intentionally breached its obligations under the purchase agreement and repeatedly misled its investors, regulators and FHC, including by making public statements over the last several months about its plans to complete the transaction, while secretly attempting to delay it by causing regulatory authorities to not issue necessary approvals. As stated in the motion, “this is a classic case of the purchaser improperly invoking a material adverse change provision to attempt to avoid its obligations to acquire a business after having buyer’s remorse over the price it had agreed to pay.”
The motion seeks a court order shortening the time for PSI to answer the complaint, ordering expedited briefing and discovery, and scheduling a prompt trial on the merits so that the matter can be resolved by the end of this year.
