Ademi LLP is investigating Concert (NASDAQ: CNCE) for possible breaches of fiduciary duty and other violations of law in its transaction with Sun Pharma.
Ademi LLP alleges Concert’s financial outlook and prospects are excellent and yet Concert shareholders will receive only $8 per share, or $576 million in equity value. Concert stockholders will also receive a non-tradeable contingent value right (CVR) entitling holders to receive up to an additional $3.50 per share of common stock in cash, payable upon deuruxolitinib achieving certain net sales milestones within specified periods. The transaction agreement unreasonably limits competing bids for Concert by imposing a significant penalty if Concert accepts a superior bid. Concert insiders will receive substantial benefits as part of change of control arrangements.