Ademi LLP is investigating Zendesk (NYSE:ZEN) for possible breaches of fiduciary duty and other violations of law in its transaction with an investor group.
Ademi LLP alleges Zendesk’s financial outlook and prospects are excellent and yet Zendesk holders will receive only $77.50 per share in a transaction that values Zendesk at approximately $10.2 billion. The transaction agreement unreasonably limits competing bids for Zendesk by imposing a significant penalty if Zendesk accepts a superior bid. Zendesk insiders will receive substantial benefits as part of change of control arrangements.
We are investigating the conduct of Zendesk’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 Zendesk.