CorePoint Lodging Inc.

Practice Area: 
Stock Symbol: 
CPLG
Case Status: 
Investigations

Ademi LLP is investigating CorePoint (NYSE: CPLG), for possible breaches of fiduciary duty and other violations of law in its transaction with Highgate and Cerberus.

Ademi LLP alleges CorePoint’s financial outlook and prospects are excellent and yet CorePoint shareholders will receive only $15.65 per share in an all-cash transaction valued at approximately $1.5 billion. The merger agreement unreasonably limits competing bids for CorePoint by prohibiting solicitation of further bids, and imposing a significant penalty if CorePoint accepts a superior bid. CorePoint insiders will receive substantial benefits as part of change of control arrangements.