Ademi LLP is investigating Summit (Nasdaq: SMMF) for possible breaches of fiduciary duty and other violations of law in its transaction with Burke & Herbert.
In the transaction, Summit stockholders are expected to receive only 0.5043 shares of Burke & Herbert common stock. The transaction agreement unreasonably limits competing transactions for Summit by imposing a significant penalty if Summit accepts a competing bid. Summit insiders will receive substantial benefits as part of change of control arrangements.
We are investigating the conduct of Summit’s board of directors, and whether they are fulfilling their fiduciary duties to all shareholders.