The merger between pay-per-mile auto insurer Metromile and INSU Acquisition (INAQ) is being investigated for possible breaches of fiduciary duty and other violations.
In a bid to take the company public, Metromile had recently announced a deal with the blank-check company INAQ, wherein INAQ would acquire Metromile through a reverse merger. Both companies have confirmed that once the merger completes, the business would have an equity value of approximately $1.3 billion on a pro-forma basis.
But law firm WeissLaw has launched an investigation into the deal, to determine whether INAQ’s board acted in the best interest of the company’s shareholders. The firm is also looking into whether INAQ’s board was even fully informed of the valuation of Metromile, and whether all information regarding the process undertaken by the board and the valuation of the transaction will be “fully and fairly disclosed” to shareholders.
WeissLaw has invited all INAQ shareholders to contact the law firm if they have any questions about their rights or interests related to the matter.
In a release, the law firm said that it has litigated multiple stockholder class and derivative actions for violations of corporate and fiduciary duties.