Ademi LLP is investigating Glatfelter (NYSE: GLT) for possible breaches of fiduciary duty and other violations of law in its transaction with Berry Global Group.
In the transaction, Glatfelter shareholders will receive only approximately 10 per cent of the shares of the newly merged entity, following the spin-off and merger of the majority of Berry’s Health, Hygiene ad Specialties segment, including nonwovens and films. Berry shareholders will receive 90% of the newly merged entity. The transaction agreement unreasonably limits competing transactions for Glatfelter by imposing a significant penalty if Glatfelter accepts a competing bid. Glatfelter insiders will receive substantial benefits as part of change of control arrangements.
We are investigating the conduct of Glatfelter’s board of directors, and whether they are fulfilling their fiduciary duties to all shareholders.