Medical center enterprise faces potential of takeover

Medical center chain, E.W. Jackson & Co., faces potential takeover of its assets and the possibility of selling its assets, according to a lawsuit filed Monday.

The company filed the lawsuit in Los Angeles Superior Court against a group of its shareholders and an unnamed third party seeking more than $1 billion in damages.

The lawsuit alleges that Jackson &amps; Co. failed to disclose significant information about its medical centers to its investors and investors in third-party private equity firms and to investors in private equity companies before the company’s public offering in late 2015.

Jackson, which includes Jackson Health and Jackson Family Medicine, was acquired by J&D in a 2011 merger.

The new company, which is controlled by the Jackson family, said Monday that it was preparing to file a notice of intent to file an amended complaint.

The statement from the new company said the filing was necessary to prevent further dilution of the Jackson & amp; Co stock by other parties, which may be adverse to the Company’s interests.

The Jackson <ds; company said in the filing that it is a diversified entity with operations in more than 70 countries and is a leading provider of specialty medical services in the United States, Canada, Mexico, the Caribbean, Europe, the Middle East, Asia, Africa and the Asia Pacific region.

It said the Jackson&amp)s medical centers are well-respected and highly regarded by physicians and their families and are the largest providers of comprehensive care in the world.

The complaint says that the Jackson Family is the only shareholder who has received a written assurance from Jackson &amping; Co that the Company is not engaging in any material activities, including the sale of its businesses, and that the assurance was not included in any of the Company reports filed with the SEC.

The filing says that Jackson<d’s shareholders are entitled to demand that Jackson provide information about the Company to its members in accordance with the provisions of the Insider Trading and Securities Fraud Enforcement Act.

“It is important to note that the insider trading charges are the first of their kind, and, as the SEC has repeatedly stated, insider trading is prohibited under the SEC’s Insider Trading Rule,” said Daniel S. Riffle, a partner at Riffles and an expert in insider trading law.

“The SEC has stated repeatedly that there is a requirement for a disclosure of the identity of the parties who are acting in concert to commit insider trading.”

The lawsuit claims that Jackson and the Jacksonfamily are entitled as the holders of a class of “unsecured, nontransferable, and non-voting common stock,” which has a voting power equal to the aggregate of the total outstanding shares of the shares outstanding as of December 31, 2020.

The claims are that the company violated the Insider Trade Act by not disclosing the identity or information of the individuals who held at least 75 percent of the voting power of the class to which the company is entitled to vote.

“For the past five years, we have repeatedly urged the SEC to address this issue and, in doing so, we are very disappointed that we have not received meaningful progress,” the company said.

“We have not seen any indication from the SEC that they are willing to act on the issue, so we are seeking to take our case directly to the courts.”

Jackson>s lawyers did not immediately respond to a request for comment.