FONAR Corporation’s board approved a sale of Class B common shares at $19.00 each to affiliates of CEO Timothy Damadian and certain executives. Class C common shares will be sold at $6.34 per share under the same transaction framework, concentrating insider ownership.

An investor rights law firm has launched an inquiry into whether the transaction terms breach fiduciary duties. The firm will handle shareholder claims on a contingent fee basis, meaning investors face no out-of-pocket legal costs while exploring potential legal actions.

Shareholders may benefit if the firm secures higher consideration, additional disclosures or other relief. The investigation could delay deal closing or force negotiations for improved terms if breaches are substantiated.