Bob Evans' board of directors sued by second pension fund that claims board improperly stripped investors of their rights to use majority vote to amend restaurant chain's bylaws
January 23, 2014
(Industry Intelligence Inc.)
– Bob Evans Farms Inc.'s board of directors have been sued by a pension fund over claims that the board improperly stripped investors of their rights to use a majority vote to amend the restaurant chain’s bylaws, Bloomberg LP reported Jan. 23.
The Oklahoma Firefighters Pension & Retirement System said Bob Evans unilaterally reinstated a requirement that investors get an 80% supermajority shareholder vote to amend the company’s bylaws as part of an effort to help directors keep their seats.
This is the second lawsuit to be filed in Delaware over Bob Evans directors’ decision to back the bylaw-supermajority rule. Sandell Asset Management Corp., a New York-based hedge fund that owns a 6.5% in Bob Evans, sued Jan. 14 over the board bylaw decision.
Bob Evans spokesman Scott Taggart declined to comment on the new lawsuit.
The primary source of this article is Bloomberg LP, New York, New York, on Jan. 23, 2014.