The Ademi Firm is investigating Adverum (Nasdaq: ADVM) for possible breaches of fiduciary duty and other violations of law in its transaction with Eli Lilly.
In the transaction, Adverum shareholders will receive $3.56 per share in cash plus contingent value rights worth up to $8.91 per share, totaling potential consideration of $12.47 per share. The contingent value rights provide up to $1.78 per share upon U.S. approval of Ixo-vec within seven years of closing, and up to $7.13 per share if annual worldwide net sales exceed $1 billion within ten years.
Adverum insiders will continue to receive substantial benefits as part of change of control arrangements.
The transaction agreement unreasonably limits competing transactions for Adverum by imposing a significant penalty if Adverum accepts a competing bid. We are investigating the conduct of the Adverum board of directors, and whether they are fulfilling their fiduciary duties to all shareholders.
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