E*TRADE Financial Corporation

Practice Area: 
Stock Symbol: 
ETFC
Case Status: 
Investigations

Ademi & O’Reilly, LLP is investigating E*TRADE [NASDAQ: ETFC] for possible breaches of fiduciary duty and other violations of the law in connection with the sale to Morgan Stanley.

Ademi & O’Reilly, LLP alleges E*TRADE’s financial outlook is improving and yet shareholders will receive only 1.0432 Morgan Stanley shares for each E*TRADE share, which represents per share consideration of $58.74 based on the closing price of Morgan Stanley common stock on February 19, 2020. The merger agreement unreasonably limits competing bids for E*TRADE by prohibiting solicitation of further bids, and imposing a termination penalty if E*TRADE accepts a superior bid. E*TRADE insiders will receive millions of dollars as part of change of control arrangements. We are investigating the conduct of E*TRADE’s board of directors, and whether they are (i) fulfilling their fiduciary duties to all shareholders, and (ii) obtaining a fair and reasonable price for E*TRADE.