Ademi LLP is investigating Reata (Nasdaq: RETA) for possible breaches of fiduciary duty and other violations of law in its private placement and its transaction with Biogen.
In the transaction, Reata stockholders are expected to receive only $172.50, reflecting an enterprise value of approximately $7.3 billion. The transaction agreement unreasonably limits competing transactions for Reata by imposing a significant penalty if Reata accepts a competing bid. Reata insiders will receive substantial benefits as part of change of control arrangements.
We are investigating the conduct of Reata’s board of directors, and whether they are fulfilling their fiduciary duties to all shareholders.