Preferred Apartment Communities, Inc.

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Ademi LLP is investigating PAC (NYSE: APTS) for possible breaches of fiduciary duty and other violations of law in its transaction with Blackstone.

Ademi LLP alleges PAC’s financial outlook and prospects are excellent and yet PAC shareholders will receive only $25.00 per share in an all-cash transaction valued at approximately $5.8 billion. The merger agreement unreasonably limits competing bids for PAC by prohibiting solicitation of further bids, and imposing a significant penalty if PAC accepts a superior bid. PAC insiders will receive substantial benefits as part of change of control arrangements.

We are investigating the conduct of PAC’s board of directors, and whether they are (i) fulfilling their fiduciary duties to all shareholders, and (ii) obtaining a fair and reasonable price for PAC.