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A shareholder derivative lawsuit was filed against The Board of directors of Imation corp. The suit was filed in Delaware Chancery court. The suit claims the Imation directors breached their fiduciary duties.
A shareholder derivative lawsuit was filed against The Board of directors of Imation corp. The suit was filed in Delaware Chancery court. The suit claims the Imation directors breached their fiduciary duties.
A shareholder derivative lawsuit was filed against The Board of directors of Imation corp. The suit was filed in Delaware Chancery court. The suit claims the Imation directors breached their fiduciary duties.
Spear Point Brings Shareholder Suit Against Imation
Directors Spear Point Capital Fund LP and Spear Point TV Raven LP (the Spear Point Funds) announced today the commencement of a shareholder derivative lawsuit against the Board of Directors of Imation Corp. (NYSE: IMN). The suit was filed in Delaware Chancery Court and claims the Imation directors breached their fiduciary duties to Imation by approving and accepting excessive compensation to the detriment of Imation and its shareholders. Ron Bienvenu, Managing Member of Spear Point Capital Partners LLC, the general partner of the Spear Point Funds, stated The Spear Point Funds have made repeated demands on Imations Board of Directors to reduce director compensation from Fortune 500 heights to levels appropriate for a company of the size and with the performance record of Imation. The Board has refused to take any meaningful action on these demands. Therefore, the Spear Point Funds have taken legal action to compel the Board to reduce their compensation and to return to Imation the unwarranted compensation the Board has received. Further, we have asked the court to impose restrictions on the Board so that Imation shareholders do not suffer from this improper self-dealing in the future. We took this action for the benefit of all Imation shareholders. Mr. Bienvenu added, The most egregious offender is Mr. L. White Matthews, III, the Non-Executive Chairman of Imation. Currently, Mr. Matthews compensation is a minimum of $400,000. In 2013, Mr. Matthews received a whopping $443,000. To put this outrageous compensation into perspective, compare Imation to 3M Company. Imation began as a spin out of assets from 3M. Despite the fact that Imations market capitalization is approximately 0.16 percent of 3Ms, and the fact that 3M has consistently delivered positive value creation for its shareholders while Imation has lost market cap for years, Imations average board compensation exceeded 3Ms in 2013. It is unconscionable that the Imation Board members continue to pay themselves at these levels when Imation shareholders continue to lose value year after year under their watch. We have asked the court to put an end to it. The Spear Point Funds are represented in this matter by Jeffrey M. Norton, of Newman Ferrara LLP in New York. *
About Spear Point
The Spear Point Funds are private partnerships managed by Spear Point Capital Management LLC, an activist investor focused on undervalued small-cap and microcap companies. Contact information: Spear Point Capital Management LLC 400 Poydras, Suite 2100 New Orleans, LA 70130 504.252.1369 info@spearpointllc.com Jeffrey M. Norton Newman Ferrara LLP 1250 Broadway, 27th Floor New York, NY 10001 212.619.5400 www.nfllp.com