Ademi LLP is investigating Avantax Brands, Inc. (NASDAQ: AVTA) for possible breaches of fiduciary duty and other violations of law in its transaction with Cetera.
In the transaction, Avantax stockholders are expected to receive only $26.00 in cash per share, without interest and subject to required withholding taxes, valuing Avantax at approximately $1.2 billion, inclusive of Avantax’s net debt. The transaction agreement unreasonably limits competing transactions for Avantax by imposing a significant penalty if Avantax accepts a competing bid. Avantax insiders will receive substantial benefits as part of change of control arrangements.
We are investigating the conduct of Avantax’s board of directors, and whether they are fulfilling their fiduciary duties to all shareholders.