FPIC Insurance Group has agreed to settle a class action shareholder lawsuit clearing the way for its merger with Fountain Acquisition Corp., a wholly-owned subsidiary of The Doctors Co., of California.
The Jacksonville, Florida-based FPIC provides medical professional liability insurance for 18,000 physicians, dentist, and other health care providers in Florida. The insurer is also the fourth largest provider of insurance in Texas and one of the five medical liability insurers in Arkansas and Georgia.
In May, the insurer agreed to merge with Fountain Acquisition Corp. and have its policyholders transferred to The Doctors Group. With the merger, The Doctors Corp. will provide physician and surgeon medical liability insurance to more than 70,000 members around the country.
As a result of the proposed merger, some shareholders filed a putative class action suit against FPIC. According to documents filed with the Security Exchange Commission, the insurer and the shareholders have now entered into a memorandum of understanding that will release all asserted claims, subject to court approval.
The Napa, California-based insurer will acquire FPIC for $42 a share, representing an aggregate purchase price of $363 million. FPIC is scheduled to hold a special shareholders meeting on August 12 to formally vote on the measure
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