AVEO Pharmaceuticals, Inc.

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Ademi LLP is investigating AVEO (NASDAQ: AVEO) for possible breaches of fiduciary duty and other violations of law in its transaction with LG Chem.

Ademi LLP alleges AVEO’s financial outlook and prospects are excellent and yet AVEO holders will receive only $15.00 per share in an all-cash transaction with an implied equity value of $566 million on a fully diluted basis. The transaction agreement unreasonably limits competing bids for AVEO by imposing a significant penalty if AVEO accepts a superior bid. AVEO insiders will receive substantial benefits as part of change of control arrangements.

We are investigating the conduct of AVEO’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 AVEO.