Diagnostic imaging provider InSight Health Services Corp. was sued Friday by shareholders who say they won't receive fair value for their stock in a proposed $28.6-million buyout by investors.
InSight, of Newport Beach, said earlier in the week that two investors' groups--Carlyle and Halifax--offered $10 per share to acquire InSight stock that the groups don't already own.
In a suit filed in Delaware Chancery Court in Wilmington, though, shareholders John and Joan Shires say the offer isn't enough, considering the company's potential for growth.
"The buyout transaction is the product of unfair dealing, and the offer is unfair and grossly inadequate" because InSight expects significant future earnings, they claim.
Because Carlyle already controls about 53% of the stock, other investors are not likely to bid, the Shires say in court papers. They asked a judge to stop the transaction and to award them damages.
InSight said earlier that the offer has to be approved by General Electric Co., which owns about 36% of the stock. InSight's stock rose slightly Friday.