Ademi LLP is investigating Desktop Metal (NYSE: DM) for possible breaches of fiduciary duty and other violations of law in its transaction with Stratasys
Desktop Metal public stockholders are expected to receive only 0.123 ordinary shares of Stratasys for each share of Desktop Metal Class A common stock, or approximately $1.88 per share of Desktop Metal Class A common stock based on the closing price of a Stratasys ordinary share of $15.26 on May 23, 2023. Following the closing of the transaction, which is expected to occur in the fourth quarter of 2023, existing Stratasys shareholders will own approximately 59% of the combined company, and legacy Desktop Metal stockholders will own approximately 41% of the combined company, in each case, on a fully diluted basis. The transaction agreement unreasonably limits competing bids for Desktop Metal by imposing a significant penalty if Desktop Metal accepts a superior bid. Desktop Metal insiders will receive substantial benefits as part of change of control arrangements.
We are investigating the conduct of Desktop Metal’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 Desktop Metal.