The Ademi Firm is investigating Landsea Homes (Nasdaq: LSEA) for possible breaches of fiduciary duty and other violations of law in its transaction with New Home Co. and its majority shareholder Apollo.
In the transaction, shareholders of Landsea Homes will receive only $11.30 per share in cash that represents an enterprise value for Landsea Homes of approximately $1.2 billion. Landsea Homes insiders will receive substantial benefits as part of change of control arrangements.
The transaction agreement unreasonably limits competing transactions for Landsea Homes by imposing a significant penalty if Landsea Homes accepts a competing bid. We are investigating the conduct of the Landsea Homes board of directors, and whether they are fulfilling their fiduciary duties to all shareholders.