Ademi LLP is investigating Tessco (NASDAQ: TESS) for possible breaches of fiduciary duty and other violations of law in its transaction with Alliance.
Ademi LLP alleges Tessco’s financial outlook and prospects are excellent and yet Tessco’s shareholders are expected to receive only $9.00 in cash, resulting in Tessco’s enterprise value of approximately $161.4 million. The transaction agreement unreasonably limits competing bids for Tessco by imposing a significant penalty if Tessco accepts a superior bid. Tessco insiders will receive substantial benefits as part of change of control arrangements.
We are investigating the conduct of Tessco’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 Tessco.