Former Louisiana Attorney General’s Law Firm Investigates Berry Global’s Proposed Transaction
New Orleans, Louisiana, January 29, 2025 – Kahn Swick & Foti, LLC (“KSF”), a leading securities law firm, is investigating potential securities laws violations by Berry Global Group, Inc. (“Berry Global”) (NYSE: BERY) following a significant correction in the company’s announced merger agreement with Rexam PLC. The investigation focuses on allegations that Berry Global and certain of its officers and directors may have violated federal securities laws.
Background on the Merger Agreement
On October 19, 2024, Berry Global and Rexam PLC announced that they had entered into a definitive agreement under which Berry Global would acquire Rexam PLC in an all-cash transaction valued at approximately $6.6 billion. The transaction was expected to close by the end of 2024, subject to customary closing conditions, including regulatory approvals and approval by Rexam PLC shareholders.
Correction in the Merger Agreement
However, on January 27, 2025, Berry Global issued a press release announcing that the transaction’s terms had been revised following a review of the financial statements of Rexam PLC. The revised terms stated that Berry Global shareholders would own approximately 37% of the combined company, instead of the previously announced 63%. The release also stated that the transaction was now expected to close in the first half of 2025.
Impact on Berry Global Shareholders
The correction in the merger agreement has raised concerns among Berry Global shareholders regarding the accuracy of the company’s disclosures and the potential impact on their ownership stake in the combined company. KSF is investigating whether Berry Global and its officers and directors violated securities laws by making false or misleading statements or failing to disclose material information to investors.
Potential Impact on the World
The merger between Berry Global and Rexam PLC was significant in the global packaging industry, as the combined company would have become one of the largest players in the market. The transaction’s revision may have broader implications for the industry, as it highlights the importance of accurate financial reporting and disclosure. The investigation by KSF may also lead to increased scrutiny of other mergers and acquisitions in the industry.
Conclusion
Investors who purchased Berry Global securities prior to the announcement of the merger agreement on October 19, 2024, may be entitled to recover their losses if it is determined that Berry Global and its officers and directors violated securities laws. KSF encourages investors who have information that may be relevant to the investigation to contact the firm as soon as possible. The investigation is ongoing, and KSF will provide updates as new information becomes available.
- Berry Global shareholders may have lost potential value due to the correction in the merger agreement.
- The investigation by KSF may lead to increased scrutiny of financial reporting and disclosure in the packaging industry.
- Investors who purchased Berry Global securities prior to the merger announcement may be entitled to recover their losses.
