Lemonade acquisition of Metromile comes under scrutiny

Global investor rights law firm Halper Sadeh has launched an investigation into whether the sale of Metromile to Lemonade is fair to Metromile shareholders.

Lemonade, an insurance company that leverages AI technology, entered into an agreement to acquire Metromile, a digital insurance platform based in the US, earlier this week.

Under the terms of the transaction, which is worth approximately $500m, Metromile shareholders will receive Lemonade common shares at a ratio of 19:1.

The investigation concerns whether Metromile and its board of directors violated federal security laws and/or breached their fiduciary duties to shareholders. Halper Sadeh will consider if Metromile failed to, among other things, obtain the best possible consideration for its shareholders, determine whether Lemonade is underpaying for Metromile, and disclose all material information necessary for Metromile shareholders to adequately assess and value the merger consideration.

Halper Sadeh encourages Metromile shareholders to contact the firm.

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