The Ademi Firm is investigating DXL (Nasdaq: DXLG) for possible breaches of fiduciary duty and other violations of law in its recently announced transaction with FullBeauty Brands Inc..
In the transaction, DXL shareholders will own 45% of the merged entity. DXL insiders will receive substantial benefits as part of change of control arrangements.
The transaction agreement unreasonably limits competing transactions for DXL by imposing a significant penalty if DXL accepts a competing bid. We are investigating the conduct of the DXL board of directors, and whether they are fulfilling their fiduciary duties to all shareholders.
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