Ademi LLP is investigating Albireo (Nasdaq: ALBO) for possible breaches of fiduciary duty and other violations of law in its transaction with Ipsen.
Ademi LLP alleges Albireo’s financial outlook and prospects are excellent and yet Albireo shareholders will receive only $42 per share in cash at the closing of the transaction, for an initial estimated aggregate consideration of $952 million plus one contingent value right (CVR) per share. Each CVR will entitle its holder to deferred cash payments of $10 per CVR payable upon the U.S. Food and Drug Administration approval of Bylvay in the Biliary Atresia indication at the latest by 31 December 2027, allowing for a potential increase in the number of patients in the BOLD study. The transaction agreement unreasonably limits competing bids for Albireo by imposing a significant penalty if Albireo accepts a superior bid. Albireo insiders will receive substantial benefits as part of change of control arrangements.