1. Ademi Firm investigates Flowserve for possible fiduciary duty breaches. 2. Flowserve shareholders will own 46.5% of the new combined entity. 3. Insiders benefit from change-of-control arrangements in the transaction. 4. The agreement restricts competitive bids against significant penalties. 5. Investigation questions the board’s fiduciary duty to shareholders.
The investigation of fiduciary duties often indicates potential legal troubles, impacting share valuations negatively. For instance, similar investigations of companies can lead to declines due to investor uncertainty.
Given the high stakes of fiduciary duty investigations, particularly during a merger, it significantly affects investor sentiment and potentially share price.
Legal investigations typically have immediate effects on investor confidence and stock performance, although the long-term effects depend on outcomes and resolutions.
MILWAUKEE--(BUSINESS WIRE)-- The Ademi Firm is investigating Flowserve (NYSE: FLS) for possible breaches of fiduciary duty and other violations of law in its transaction with Chart Industries.
Click here to learn how to join our investigation and obtain additional information or contact us at gademi@ademilaw.com or toll-free: 866-264-3995. There is no cost or obligation to you.
In the reverse merger transaction, shareholders of Flowserve shareholders will own approximately 46.5% of the combined company. Flowserve insiders will receive substantial benefits as part of change of control arrangements.
The transaction agreement unreasonably limits competing transactions for Flowserve by imposing a significant penalty if Flowserve accepts a competing bid. We are investigating the conduct of the Flowserve board of directors, and whether they are fulfilling their fiduciary duties to all shareholders.
We specialize in shareholder litigation involving buyouts, mergers, and individual shareholder rights. For more information, please feel free to call us. Attorney advertising. Prior results do not guarantee similar outcomes.