They probably had knowledge of the problems with the company, at the very least they had suspicions IMO.
Just a guess on my part but the executives overlooked the problems so they could report the acquisition and the short-term revenue gains and report to analysts all the great things this company would do for the bottom line, stock prices go up, executives cashout then retire or leave to loot and pillage another company.
Joined by their board of directors. I was looking at the board stock grants of a relatively small company I was screening for purchase. In one year grants to their board members exceed my lifetime earnings. Seems like a lot for a part time job. It is a small club and we ain’t in it.