Ademi LLP is investigating Qualtrics (Nasdaq: XM) for possible breaches of fiduciary duty and other violations of law in its transaction with Silver Lake and CPP Investments.
Ademi LLP alleges Qualtrics’ financial outlook and prospects are excellent and yet Qualtrics shareholders are expected to receive only $18.15 per share, in an all-cash transaction that values Qualtrics at approximately $12.5 billion. The transaction agreement unreasonably limits competing bids for Qualtrics by imposing a significant penalty if Qualtrics accepts a superior bid. Qualtrics insiders will receive substantial benefits as part of change of control arrangements.