Parkway

Practice Area: 
Stock Symbol: 
PKY
Case Status: 
Investigations

We are investigating the Board of Directors of Parkway, Inc. for possible breaches of fiduciary duty and other violations of Maryland law in connection with the sale of Parkway to Canada Pension.

We are alleging that Parkway’s long-term financial outlook is improving and yet Parkway shareholders will receive the equivalent of $23.05 per share.  Canada Pension is well aware of Parkway’s improving financial metrics and is purchasing Parkway at a substantial discount. The merger agreement unreasonably limits competing bids for Parkway by (i) prohibiting solicitation of any further bids, and (ii) imposing a termination penalty should Parkway receive and accept a superior bid. Parkway insiders, their affiliates and other major shareholders own significant voting stock, and will receive millions of dollars as part of change of control arrangements, and therefore can unduly influence a sale of Parkway. Our investigation centers on the conduct of Parkway’s Board of Directors, who have unanimously approved the transaction, and whether they are (i) fulfilling their fiduciary duties to all shareholders, and (ii) obtaining a fair and reasonable price for Parkway given its current financial condition and prospects.