Ademi LLP is investigating ARC Document Solutions (NYSE: ARC) for possible breaches of fiduciary duty and other violations of law in its transaction with the acquisition group led by Kumarakulasingam Suriyakumar, ARC Document Solutions’ Chairman and CEO, and several other members of the executive team of ARC Document Solutions.
ARC Document Solutions stockholders will receive only $3.40 per share in the transaction. The transaction agreement unreasonably limits competing transactions for ARC Document Solutions by imposing a significant penalty if ARC Document Solutions accepts a competing bid. ARC Document Solutions insiders will receive substantial benefits as part of change of control arrangements.