Ademi LLP is investigating Vonage (Nasdaq: VG), for possible breaches of fiduciary duty and other violations of law in its transaction with Ericsson.
Ademi LLP alleges Vonage’s financial outlook and prospects are excellent and yet Vonage shareholders will receive only approximately $21 per share, representing a total acquisition price of approximately $6.2 billion. The merger agreement unreasonably limits competing bids for Vonage by prohibiting solicitation of further bids, and imposing a significant penalty if Vonage accepts a superior bid. Vonage insiders will receive substantial benefits as part of change of control arrangements.
We are investigating the conduct of Vonage’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 Vonage.