The Ademi Firm is investigating Katapult (Nasdaq: KPLT) for possible breaches of fiduciary duty and other violations of law in its recently announced transaction with The Aaron’s Company Inc. and CCF Holdings LLC.
In the transaction, Katapult shareholders will own 6% of the combined company on a fully diluted basis, while stakeholders of Aaron’s and CCF Holdings will own the remainder. Katapult insiders will receive substantial benefits as part of change of control arrangements.
The transaction agreement unreasonably limits competing transactions for Katapult by imposing a significant penalty if Katapult accepts a competing bid. We are investigating the conduct of the Katapult board of directors, and whether they are fulfilling their fiduciary duties to all shareholders.
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