Boards Fiduciary Responsibility

[MRG]

Not sure if this is the correct forum, mods please move it at your discretion.

A holding I own is under investigation by a law firm for the BODs Fiduciary Responsibility being breached.

My question is would you ask to be included or not. They provide no details, I understand that. At one time I owned 400k in this security, now from scaling out it's down to 90k. Any experience in this area? Thanks in advance.



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[RockyMtn]

breaching fiduciary responsibility is very easy to accuse, very difficult to prove. I would tell the firm that unless they are going to give you more specific info that you are out. That is unless of course you think the BOD have acted inappropriately.

 

[MRG]

Thanks, I think I can email them and ask for more information.

I don't have any direct evidence of improper fiduciary behavior(discrimination yes), I knew several of the old board, including the COB, always thought they starched their shorts. I truly believe the old COB helped many become FI.

Much of the BOD had turned over "thanks" to an activist investor. The new COB, I shook his hand once, took a few weeks to de-slime.

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[MRG]

Got an answer, it's against the new board. According to the claim there was a protective put attached to a large debt offering. Funny the date is shortly after the prior CFO retired. Apparently it serves as a poison pill to ensure the current BOD can't be changed by a majority proxy vote. I have no legal training, but that doesn't sound right.

Sounds like what I would expect from the new COB. Don't see any downside, of couse I'll probably receive 12 cents at most.

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