We are investigating the proposed sale of Sterling Check Corp. (Nasdaq: STER) (“Sterling”) to First Advantage Corporation (“FAC”) for cash and stock valued at approximately $16.73 per share. Under the terms of the transaction, Sterling shareholders can elect to receive either $16.73 per share in cash or 0.979 shares of FAC common stock for each Sterling share, subject to proration.
Certain entities advised by or affiliated with Goldman Sachs & Co. LLC. (“Goldman”) presently own approximately 52.8% of Sterling’s outstanding shares. Yet, Goldman served as one of Sterling’s financial advisors for the deal, which posed a potential conflict.
If you remain a Sterling shareholder and have concerns about the transaction, you may contact our firm to discuss your legal rights at no charge by completing and submitting the form below.
Why is there an investigation?
On February 29, 2024, Sterling announced that it had agreed to sell itself to FAC for cash and stock valued at approximately $16.73 per share. Under the terms of the transaction, Sterling shareholders can elect to receive either $16.73 per share in cash or 0.979 shares of FAC common stock for each Sterling share, subject to proration.
Sterling shareholders are expected to own approximately 16% of the combined company after closing, and current FAC shareholders will own approximately 84%.
Certain entities advised by or affiliated with Goldman presently own approximately 52.8% of Sterling’s outstanding shares. Yet, Goldman served as one of Sterling’s financial advisors for the deal, which posed a potential conflict.
“We are investigating whether the Sterling Board of Directors acted in the best interests of Sterling shareholders in approving the sale.” explained Joshua Fruchter, a founding partner of Wohl & Fruchter. “This includes whether the consideration agreed upon is fair to Sterling shareholders, and whether all material information regarding the transaction has been fully disclosed, especially given Goldman’s potential conflict.”