Ademi LLP is investigating HD Supply (Nasdaq:HDS) for possible breaches of fiduciary duty and other violations of the law in its transaction with Home Depot.
Ademi LLP alleges HD Supply’s financial outlook is improving and yet shareholders will receive only $56 per share. The merger agreement unreasonably limits competing bids for HD Supply by prohibiting solicitation of further bids, and imposing a termination penalty if HD Supply accepts a superior bid. HD Supply insiders will receive millions of dollars as part of change of control arrangements. We are investigating the conduct of HD Supply’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 HD Supply.