Recently, I blogged about a Cooley Alert detailing some opposition to retail voting programs patterned after the one pioneered by ExxonMobil, including noting how some aspects of the campaign against these voting programs are misleading.
Now the City of Hollywood Police Officers’ Retirement System has filed a proposed class action in U.S. District Court of New Jersey on behalf of ExxonMobil shareholders against the company and its board, alleging that they are breaching their fiduciary duties in connection with the company’s adoption of its retail voting program. This pension fund has a history of filing lawsuits. Here’s the complaint.
A number of companies have been curious about the retail voting program and inquiring about the various pros and cons. One of the cons certainly is the reaction of institutional investors to such a program and the related litigation risk. The disposition of this case might help companies consider this litigation risk…
Authored by
Broc Romanek