Ademi LLP is investigating FONAR (NASDAQ: FONR) for possible breaches of fiduciary duty and other violations of law in its recently announced transaction with Timothy Damadian and an acquisition group consisting of certain members of the FONAR’s management team and board of directors and third parties.
In the transaction, FONAR stockholders will be entitled to receive $19.00 per share of the Company’s common stock, $19.00 per share of the Company’s Class B common stock, $6.34 per share of the Company’s Class C common stock and $10.50 per share of the Company’s Class A non-voting preferred stock.
FONAR insiders will receive substantial benefits as part of change of control arrangements.
The transaction agreement unreasonably limits competing transactions for FONAR by imposing a significant penalty if FONAR accepts a competing bid. We are investigating the conduct of the FONAR board of directors, and whether they are fulfilling their fiduciary duties to all shareholders.
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