Ademi LLP is investigating MDC (NYSE: MDC) for possible breaches of fiduciary duty and other violations of law in its transaction with Sekisui House.
In the transaction, MDC stockholders will receive only $63.00 per share in an all-cash transaction with an equity value of $4.9 billion. The transaction agreement unreasonably limits competing transactions for MDC by imposing a significant penalty if MDC accepts a competing bid. MDC insiders will receive substantial benefits as part of change of control arrangements.
We are investigating the conduct of MDC’s board of directors, and whether they are fulfilling their fiduciary duties to all shareholders.