Ademi LLP is investigating Convey (NYSE:CNVY) for possible breaches of fiduciary duty and other violations of law in its transaction with TPG Capital.
Ademi LLP alleges Convey’s financial outlook and prospects are excellent and yet Convey holders will receive only $10.50 per share in cash, representing an enterprise value of approximately $1.1 billion. The transaction agreement unreasonably limits competing bids for Convey by imposing a significant penalty if Convey accepts a superior bid. Convey insiders will receive substantial benefits as part of change of control arrangements.
We are investigating the conduct of Convey’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 Convey.