Kohl’s Shareholder Claims Board ‘Grossly Misled’ Investors

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By Dean Seal

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A minority shareholder of Kohl’s Corp. is considering legal action against the board for waiting until just after the company’s annual shareholder meeting to disclose a hefty first-quarter earnings miss, reduced full-year guidance and the departure of two executives.

Macellum Advisors GP LLC, which owns roughly 5% of the retailer’s shares, said other investors should feel “betrayed and outraged” that Kohl’s directors appear to have breached their fiduciary duty to the company by withholding critical information.

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Kohl’s didn’t respond to a request for comment Friday.

Macellum said that Kohl’s should immediately replace three of its long-serving board members with new appointees, including one shareholder representative from Macellum, and push forward to find the best buyout offer it can get.

“At this point, we believe the current board has forfeited its right to continue to oversee Kohl’s and review offers versus the company’s internal plan, and it should immediately commit to accepting the highest financed acquisition offer received at the conclusion of the sale process,” Jonathan Duskin, managing partner at Macellum, said in a statement.

Duskin said Macellum is exploring claims against the board and will take legal action if necessary to protect shareholder interests.

Write to Dean Seal at [email protected]

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Credit: www.marketwatch.com /

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