Ademi & Fruchter LLP is investigating Logan Ridge (Nasdaq: LRFC) for possible breaches of fiduciary duty and other violations of law in its transaction with Portman Ridge.
In the transaction, Logan Ridge stockholders will receive only 1.50 shares of Portman Ridge common stock in exchange for each share of common stock of Logan Ridge. Based on Portman Ridge’s closing price of $16.68 per share on January 24, 2025, the merger consideration values Logan Ridge’s shares at $25.02 per share. Logan Ridge insiders will receive substantial benefits as part of change of control arrangements.
The transaction agreement unreasonably limits competing transactions for Logan Ridge by imposing a significant penalty if Logan Ridge accepts a competing bid. We are investigating the conduct of Logan Ridge’s board of directors, and whether they are fulfilling their fiduciary duties to all shareholders.