Ademi LLP is investigating MoneyGram (NASDAQ: MGI) for possible breaches of fiduciary duty and other violations of law in its transaction with Madison Dearborn.
Ademi LLP alleges MoneyGram’s financial outlook and prospects are excellent and yet MoneyGram shareholders will receive only $11.00 in cash for each share of MoneyGram. The merger agreement unreasonably limits competing bids for MoneyGram by prohibiting solicitation of further bids, and imposing a significant penalty if MoneyGram accepts a superior bid. MoneyGram insiders will receive substantial benefits as part of change of control arrangements.
We are investigating the conduct of MoneyGram’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 MoneyGram.