MedQuist investor seeks court order to force annual meeting, election of directors

By Angela McDaniels

Seattle, Oct. 12 - MedQuist Inc. investor Costa Brava Partnership III LP said it filed a complaint against the company in order to compel it to hold an annual meeting of stockholders by Dec. 15 and to hold an election for all seats on the board of directors at that meeting.

The complaint was filed on Tuesday in the Superior Court of New Jersey, according to a schedule 13D filing with the Securities and Exchange Commission.

On Wednesday, judge Ronald E. Bookbinder signed an order that MedQuist must appear before the court on Nov. 16 to show why it should not be ordered to hold the meeting and election, the filing stated.

In addition, Costa Brava recommended that MedQuist nominate Seth Hamot, Andrew Siegel, Douglas Gleason, Douglas Linton and Alok Mohan to become directors. If the company declines, Costa Brava said it will nominate them and will seek support from stockholders to replace all existing directors with an alternative slate proposed by Costa Brava.

The investors purchased 90,766 MedQuist shares on the open market between Aug. 28 and Oct. 3 for $9.95 to $11.83 each and 1,390,000 shares in a mini tender on Sept. 17 for $12.25 each.

In total, the investors own 1,938,821 shares, or 5.2%, of the Mt. Laurel, N.J.-based medical transcription technology and services company.

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