Ademi LLP is investigating Farmer Brothers (NASDAQ: FARM) for possible breaches of fiduciary duty and other violations of law in its recently announced transaction with Royal Cup Coffee and Tea.
In the transaction, Farmer Brothers stockholders will receive $1.29 per share in an all-cash transaction. Farmer Brothers insiders will receive substantial benefits as part of change of control arrangements.
The transaction agreement unreasonably limits competing transactions for Farmer Brothers by imposing a significant penalty if Farmer Brothers accepts a competing bid. We are investigating the conduct of the Farmer Brothers board of directors, and whether they are fulfilling their fiduciary duties to all shareholders.
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