Karuna Therapeutics, Inc.

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Ademi LLP is investigating Karuna (NASDAQ: KRTX) for possible breaches of fiduciary duty and other violations of law in its transaction with Bristol-Myers.

In the transaction, Karuna stockholders will receive only $330 a share in cash. The transaction agreement unreasonably limits competing transactions for Karuna by imposing a significant penalty if Karuna accepts a competing bid. Karuna insiders will receive substantial benefits as part of change of control arrangements.

We are investigating the conduct of Karuna’s board of directors, and whether they are fulfilling their fiduciary duties to all shareholders.