Ademi LLP is investigating NeoPhotonics (NYSE: NPTN), for possible breaches of fiduciary duty and other violations of law in its transaction with Lumentum.
Ademi LLP alleges NeoPhotonics’ financial outlook and prospects are excellent and yet NeoPhotonics shareholders will receive $16.00 per share in cash, which represents a total equity value of approximately $918 million. The merger agreement unreasonably limits competing bids for NeoPhotonics by prohibiting solicitation of further bids, and imposing a significant penalty if NeoPhotonics accepts a superior bid. NeoPhotonics insiders will receive substantial benefits as part of change of control arrangements.