Ademi LLP is investigating Iowa First Bancshares (OTC Pink: IOFB), for possible breaches of fiduciary duty and other violations of law in its transaction with MidWestOne.
Ademi LLP alleges Iowa First Bancshares’ financial outlook and prospects are excellent and yet Iowa First Bancshares shareholders will receive only aggregate cash consideration of $47.6 million, subject to adjustment. The merger agreement unreasonably limits competing bids for Iowa First Bancshares by prohibiting solicitation of further bids, and imposing a significant penalty if Iowa First Bancshares accepts a superior bid. Iowa First Bancshares insiders will receive substantial benefits as part of change of control arrangements.