Ademi LLP is investigating Cambridge (NASDAQ: CATC) for possible breaches of fiduciary duty and other violations of law in its transaction with Eastern.
In the transaction, Cambridge stockholders are expected to receive only 4.956 shares of Eastern common stock. Eastern anticipates issuing approximately 39.4 million shares of its common stock in the merger. Based upon Eastern’s $13.41 per share closing price on September 18, 2023, the transaction is valued at approximately $528 million. The transaction agreement unreasonably limits competing transactions for Cambridge by imposing a significant penalty if Cambridge accepts a competing bid. Cambridge insiders will receive substantial benefits as part of change of control arrangements.
We are investigating the conduct of Cambridge’s board of directors, and whether they are fulfilling their fiduciary duties to all shareholders.