ARV Files Suit to Stop Emeritus

ARV Assisted Living Inc. said Wednesday it has filed a federal lawsuit in an attempt to block Emeritus Corp.’s unsolicited $17.50-a-share tender offer.

ARV said its lawsuit seeks to prevent Seattle-based Emeritus from pursuing its “highly conditional” tender offer and from soliciting proxies or taking other steps to attempt to replace ARV’s current board until Emeritus waives certain conditions and makes “legally required” disclosures to ARV shareholders.

Earlier this week, ARV’s board rejected Emeritus’ tender offer, calling the bid “inadequate.” On Tuesday, former ARV Assisted Living Chairman and Chief Executive Gary Davidson joined Emeritus in calling for a special shareholder meeting to consider the tender offer. Davidson, however, stopped short of completely supporting the bid, citing its contingencies.

Emeritus and ARV both operate assisted living communities.