Ademi LLP is investigating Michaels (NASDAQ: MIK) for possible breaches of fiduciary duty and other violations of law in its transaction with Apollo.
Ademi LLP alleges Michaels’s financial outlook is excellent and yet Michaels shareholders will receive only $22 for each share of Michaels. The merger agreement unreasonably limits competing bids for Michaels by prohibiting solicitation of further bids, and imposing a termination penalty if Michaels accepts a superior bid. Michaels insiders will receive millions of dollars as part of change of control arrangements. We are investigating the conduct of Michaels’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 Michaels.