Ademi & O’Reilly, LLP is investigating Legg Mason, Inc. [NYSE:LM] for possible breaches of fiduciary duty and other violations of the law in connection with the sale to Franklin Resources.
Ademi & O’Reilly, LLP alleges Legg Mason’s financial outlook is improving and yet shareholders will receive only $50.00 per share of common stock in an all-cash transaction. The merger agreement unreasonably limits competing bids for Legg Mason by prohibiting solicitation of further bids, and imposing a termination penalty if Legg Mason accepts a superior bid. Legg Mason insiders will receive millions of dollars as part of change of control arrangements. We are investigating the conduct of Legg Mason’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 Legg Mason.