Ademi LLP is investigating Summer Infant (NASDAQ: SUMR) for possible breaches of fiduciary duty and other violations of law in its transaction with Google.
Ademi LLP alleges Summer Infant’s financial outlook and prospects are excellent and yet Summer Infant shareholders will receive only $12 per share. The merger agreement unreasonably limits competing bids for Summer Infant by prohibiting solicitation of further bids, and imposing a significant penalty if Summer Infant accepts a superior bid. Summer Infant insiders will receive substantial benefits as part of change of control arrangements.
We are investigating the conduct of Summer Infant’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 Summer Infant.