Ademi LLP is investigating Sanderson Farms, Inc. (NASDAQ: SAFM) for possible breaches of fiduciary duty and other violations of law in its transaction with Cargill and Continental Grain.
Ademi LLP alleges Sanderson Farms’ financial outlook and prospects are excellent and yet Sanderson Farms shareholders will receive only $203 per share in cash, representing a total equity value for Sanderson Farms of $4.53 billion. The merger agreement unreasonably limits competing bids for Sanderson Farms by prohibiting solicitation of further bids, and imposing a substantial penalty if Sanderson Farms accepts a superior bid. Sanderson Farms insiders will receive millions of dollars as part of change of control arrangements. We are investigating the conduct of Sanderson Farms’ board of directors, and whether they are (i) fulfilling their fiduciary duties to all shareholders, and (ii) obtaining a fair and reasonable price for Sanderson Farms.