1. Monogram investigated for potential fiduciary duty breaches related to Zimmer Biomet deal. 2. Shareholders to receive $4.04 per share, with potential additional value through 2030. 3. Transaction restricts competing bids, raising concerns about board conduct. 4. Insiders to benefit substantially from change of control arrangements.
The investigation signals potential legal troubles, which often negatively affect stock prices. Historical examples show lawsuits can lead to decreased investor confidence and lower stock performance.
The investigation could undermine investor trust and suggest serious issues with governance. Given the transaction's complexity and insiders' benefits, stakeholders are likely to reassess their positions.
The investigation may lead to immediate effects on share price due to market reactions. Recent similar cases returned mixed outcomes, showing short-term price volatility for affected firms.
MILWAUKEE--(BUSINESS WIRE)-- The Ademi Firm is investigating Monogram (NASDAQ: MGRM) for possible breaches of fiduciary duty and other violations of law in its transaction with Zimmer Biomet.
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 transaction, shareholders of Monogram will receive $4.04 per share in cash, representing an equity value of approximately $177 million and an enterprise value of approximately $168 million. The transaction also includes contingent value rights that could provide Monogram shareholders up to an additional $12.37 per share through 2030 if certain product development, regulatory and revenue milestones are achieved.
Monogram insiders will receive substantial benefits as part of change of control arrangements.
The transaction agreement unreasonably limits competing transactions for Monogram by imposing a significant penalty if Monogram accepts a competing bid. We are investigating the conduct of the Monogram 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.