Yesterday saw the news of the intended acquisition of Poshmark by South Korean eCommerce company Naver. Today however has seen two law firms come out stating that they are investigating the alleged acquisition under suspicions of breaches of fiduciary duty and other violations of the law.
The two law companies that have released statements are Ademi LLP and Weiss Law, who have raised concerns surrounding the value that was offered to shareholders in the acquisition and also some of the worrying terms that are part of the contract with Naver.
You can see some excerpts of the statements below along with links to the corresponding law firms’ dedicated landing pages to find out more about any intended case actions.
Poshmark Investigation Statements
“Ademi LLP alleges Poshmark’s financial outlook and prospects are excellent and yet shareholders will receive only $17.90 in cash, representing an enterprise value of approximately $1.2 billion. The transaction agreement unreasonably limits competing bids by imposing a significant penalty if Poshmark accepts a superior bid. Poshmark insiders will receive substantial benefits as part of a change of control arrangements.
We are investigating the conduct of Poshmark’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 Poshmark.
Click here to learn how to join the action: https://www.ademilaw.com/case/poshmark-inc.”
“Weiss Law is investigating whether (i) Poshmark’s board of directors acted in the best interests of Company shareholders in agreeing to the proposed transaction, (ii) the $17.90 per-share merger consideration adequately compensates Poshmark’s shareholders, and (iii) all information regarding the sales process and valuation of the transaction will be fully and fairly disclosed.
If you own shares and wish to discuss this investigation or have any questions concerning this notice or your rights or interests, visit our website: https://www.weisslaw.co/news-and-cases/posh“
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