Johnson Fistel Investigates Potential Board Fiduciary Duty Breaches in the Select Medical Take-Private Transaction

SAN DIEGO, May 01, 2026 (GLOBE NEWSWIRE) -- Shareholder rights law firm Johnson Fistel, PLLP has launched an investigation into whether the board members of Select Medical Holdings Corporation (NYSE: SEM) breached their fiduciary duties in connection with the proposed sale of the company to a consortium led by Robert A. Ortenzio, Martin F. Jackson, and Welsh, Carson, Anderson & Stowe.

If you own Select Medical shares and believe this proposed transaction undervalues your investment, please consider joining our investigation. To participate or learn more, you can click or copy and paste the following link:
https://www.johnsonfistel.com/investigations/select-medical-holdings-corporation/

Shareholders seeking more information may also contact lead analyst Jim Baker (jimb@johnsonfistel.com, 619-814-4471). If emailing, please include a phone number.

Background
On March 2, 2026, Select Medical announced that it had entered into a definitive merger agreement pursuant to which an entity affiliated with a consortium led by Robert A. Ortenzio, Executive Chairman, Co-Founder and Director of Select Medical, Martin F. Jackson, Senior Executive Vice President of Strategic Finance and Operations, and Welsh, Carson, Anderson & Stowe will acquire all outstanding shares of Select Medical common stock not already owned by the consortium for $16.50 per share in cash.

According to the announcement, Mr. Ortenzio, Mr. Jackson, and certain of their affiliates have agreed to roll over their equity to the parent entity of the surviving corporation in lieu of receiving the cash merger consideration. The Company further disclosed that the initial rollover participants collectively beneficially own approximately 11.8% of Select Medical’s outstanding common stock and have agreed to vote their shares in favor of adoption of the merger agreement.

The transaction is expected to close in mid-2026, subject to customary closing conditions, including approval by Select Medical stockholders and approval by a majority of shares not held by the consortium or its affiliates.

If consummated, the transaction would result in Select Medical becoming a privately held company, and its shares of common stock would be deregistered under applicable SEC rules and no longer listed on the New York Stock Exchange.

Johnson Fistel’s investigation focuses on whether the Company’s board of directors conducted a fair process to maximize shareholder value and whether minority shareholders are receiving fair consideration for their shares.

About Johnson Fistel, PLLP | Top Law Firm – Securities Fraud & Investor Rights
Johnson Fistel, PLLP is a nationally recognized shareholder-rights law firm with offices in California, New York, Georgia, Idaho, and Colorado. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits and also assists foreign investors who purchased shares on U.S. exchanges. Stay informed about stock-drop news and learn how Johnson Fistel can help you recover losses by visiting www.johnsonfistel.com.

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In 2024, Johnson Fistel was ranked among the Top 10 Plaintiff Law Firms by ISS Securities Class Action Services. This recognition reflects the firm’s effectiveness in advocating for investors, having recovered approximately $90,725,000 for aggrieved clients in cases where it served as lead or co-lead counsel. This marks the eighth time the firm has been recognized as a top plaintiffs’ securities law firm in the United States, based on the total dollar value of final recoveries.

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Contact
Johnson Fistel, PLLP
501 W. Broadway, Suite 800
San Diego, CA 92101
James Baker, Investor Relations – or – Frank J. Johnson, Esq.
(619) 814-4471 | jimb@johnsonfistel.com | fjohnson@johnsonfistel.com

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