Ademi LLP is investigating Eargo (Nasdaq: EAR) for possible breaches of fiduciary duty and other violations of law in its transaction with Patient Square Capital.
In the transaction, Eargo stockholders are expected to receive only $2.55 per share. The transaction agreement unreasonably limits competing transactions for Eargo by imposing a significant penalty if Eargo accepts a competing bid. Eargo insiders will receive substantial benefits as part of change of control arrangements.
We are investigating the conduct of Eargo’s board of directors, and whether they are fulfilling their fiduciary duties to all shareholders.