Ademi LLP is investigating AlerisLife (Nasdaq: ALR) for possible breaches of fiduciary duty and other violations of law in its transaction with ABP.
Ademi LLP alleges AlerisLife’s financial outlook and prospects are excellent and yet AlerisLife shareholders will receive only $1.31 per share, with total consideration of approximately $43.8 million. The transaction agreement unreasonably limits competing bids for AlerisLife by imposing a significant penalty if AlerisLife accepts a superior bid. AlerisLife insiders will receive substantial benefits as part of change of control arrangements.
We are investigating the conduct of AlerisLife’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 AlerisLife.