Ademi LLP is investigating Matterport (NASDAQ: MTTR) for possible breaches of fiduciary duty and other violations of law in its transaction with CoStar Group.
In the transaction, Matterport stockholders will receive only $5.50 per share, representing an equity value of approximately $2.1 billion and an enterprise value of approximately $1.6 billion based on the closing price for CoStar Group common stock on April 19, 2024. Specifically, Matterport stockholders will receive $2.75 in cash and $2.75 in shares of CoStar Group common stock for each share of Matterport common stock. The transaction agreement unreasonably limits competing transactions for Matterport by imposing a significant penalty if Matterport accepts a competing bid. Matterport insiders will receive substantial benefits as part of change of control arrangements.
We are investigating the conduct of Matterport’s board of directors, and whether they are fulfilling their fiduciary duties to all shareholders.