Ademi LLP is investigating Protective Insurance (NASDAQ: PTVCA and PTVCB) for possible breaches of fiduciary duty and other violations of law in its transaction with The Progressive.
Ademi LLP alleges Protective Insurance’s financial outlook is improving and yet Protective Insurance shareholders will receive only $23.30 for each Class A and Class B share they own. The merger agreement unreasonably limits competing bids for Protective Insurance by prohibiting solicitation of further bids, and imposing a termination penalty if Protective Insurance accepts a superior bid. Protective Insurance insiders will receive millions of dollars as part of change of control arrangements. We are investigating the conduct of Protective Insurance’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 Protective Insurance.