Spirit Airlines, Inc.

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Ademi LLP is investigating Sprint (NYSE: SAVE) for possible breaches of fiduciary duty and other violations of law in its transaction with Frontier.

Ademi LLP alleges Sprint’s financial outlook and prospects are excellent and yet Sprint shareholders will receive only 1.9126 shares of Frontier plus $2.13 in cash for each existing Spirit share they own, implying a value of $25.83 per Spirit share at Frontier’s closing stock price of $12.39 on February 4. The merger agreement unreasonably limits competing bids for Sprint by prohibiting solicitation of further bids, and imposing a significant penalty if Sprint accepts a superior bid. Sprint insiders will receive substantial benefits as part of change of control arrangements.

We are investigating the conduct of Sprint’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 Sprint.