Ademi & O’Reilly, LLP is investigating CNX Midstream (NYSE: CNXM) for possible breaches of fiduciary duty and other violations of the law in connection with the sale to CNX Resources.
Ademi & O’Reilly, LLP alleges CNX Midstream’s financial outlook is improving and yet shareholders will receive only 0.88 shares of CNX Resources common stock for each common unit of CNX Midstream that CNX Resources does not already own. The merger agreement unreasonably limits competing bids for CNX Midstream by prohibiting solicitation of further bids, and imposing a termination penalty if CNX Midstream accepts a superior bid. CNX Midstream insiders will receive millions of dollars as part of change of control arrangements. We are investigating the conduct of CNX Midstream’s board of directors, and whether they are (i) fulfilling their fiduciary duties to all shareholders, and (ii) obtaining a fair and reasonable price for CNX Midstream.