Ademi LLP is investigating Bally’s (NYSE: BALY) for possible breaches of fiduciary duty and other violations of law in its transaction with Standard General.
Bally’s stockholders will receive only $18.25 per Bally’s share or Bally’s stockholders may elect to retain all or a portion of their Bally’s stock by means of a rollover election. The transaction values Bally’s at approximately $4.6 billion in enterprise value. The transaction agreement unreasonably limits competing transactions for Bally’s by imposing a significant penalty if Bally’s accepts a competing bid. Bally’s insiders will receive substantial benefits as part of change of control arrangements.
We are investigating the conduct of Bally’s board of directors, and whether they are fulfilling their fiduciary duties to all shareholders.