Under the terms of the agreement, investors are set to receive $27.00 in cash plus Rocket Lab common stock, reaching a notional value of $54.00 per share. The exchange ratio includes a collar mechanism, fluctuating between $67.50 and $112.50. Ademi LLP suggests the deal structure is inherently flawed, pointing to restrictive clauses that impose significant financial penalties on Iridium should the company attempt to field competing bids.

Beyond the valuation, the investigation centers on potential breaches of fiduciary duty. Lawyers are examining the specific change-of-control arrangements that grant substantial payouts to Iridium insiders, raising concerns about whether the board sufficiently explored options to secure the highest possible price for its broader investor base.