Ademi & O’Reilly, LLP is investigating Jernigan (NYSE: JCAP) for possible breaches of fiduciary duty and other violations of the law in connection with the sale to NexPoint.
Ademi & O’Reilly, LLP alleges Jernigan’s financial outlook is improving and yet shareholders will receive only $17.30 per share/unit. The merger agreement unreasonably limits competing bids for Jernigan by prohibiting solicitation of further bids, and imposing a termination penalty if Jernigan accepts a superior bid. Jernigan insiders will receive millions of dollars as part of change of control arrangements. We are investigating the conduct of Jernigan’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 Jernigan.