Ademi LLP is investigating Bluerock (NYSE American: BRG) for possible breaches of fiduciary duty and other violations of law in its transaction with Blackstone.
Ademi LLP alleges Bluerock’s financial outlook and prospects are excellent and yet Bluerock shareholders will receive only $24.25 per share in an all-cash transaction valued at $3.6 billion. The merger agreement unreasonably limits competing bids for Bluerock by prohibiting solicitation of further bids, and imposing a significant penalty if Bluerock accepts a superior bid. Bluerock insiders will receive substantial benefits as part of change of control arrangements.
We are investigating the conduct of Bluerock’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 Bluerock.