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In November, artificial intelligence (AI) powered insurance company Lemonade, Inc. (LMND) and MILE agreed to LMND’s acquisition of MILE in an all-stock transaction that implies a fully diluted approximate equity value of $500 million, or just over $200 million net of cash. According to the agreement, MILE shareholders will receive LMND common shares at a ratio of 19:1. The deal is expected to close during the second quarter of 2022. “Joining forces with Lemonade Car will create the most customer-centric, fair, and affordable car insurance, and is a great outcome for Metromile shareholders, who will benefit as shareholders of the combined company,” said Dan Preston, CEO of MILE. However, MILE shares have slumped 20.1% in price over the past month.
Following the acquisition news, several law firms, including Halper Sadeh LLP, a global investor rights law firm, WeissLaw LLP, Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, have initiated investigations of MILE regarding potential violations of the federal securities laws and breaches of fiduciary duties by the company’s board of directors relating to the proposed acquisition of the company by LMND.
