CHICAGO--(BUSINESS WIRE)--Arosa Investment Management LLC, the beneficial owner of approximately 9.9% of the shares of Datatrak International, Inc. (OTC: DTRK) that has initiated a proxy contest to elect three of five directors at Datatrak’s Annual Meeting of Shareholders, has today filed a lawsuit against Datatrak, its Chairman/CEO Larry Birch and the other Datatrak directors to enforce the shareholder vote in favor of Arosa’s director candidates.
Datatrak abruptly delayed its Annual Meeting only one day before the meeting to avoid having to honor the shareholder vote in favor of Arosa’s director candidates, Arosa’s suit contends. Arosa believes that Datatrak’s actions in denying shareholders their fundamental right to elect the company’s directors is just another example of the long history of poor corporate governance at Datatrak.
True to form, the Datatrak board took the further step of appointing a new director to the board, without a shareholder vote, in board meetings held on the very day the Annual Meeting was scheduled to be held. Datatrak advertises Andrew T. Pitler as a “new independent director,” but shareholders should know that Pitler, who apparently has no prior public company board experience, is a long time close friend and confidant of Chairman/CEO Larry Birch. With this action taken flagrantly in defiance of the rights of shareholders, Datatrak’s “independent” directors continue what we believe is their long history of blindly following their dictatorial and self-serving Chairman/CEO.
Shareholders should also note the November 6 decision of the U.S. District Court for the Northern District of Ohio dismissing Datatrak’s entire patent infringement lawsuit against Medidata and invalidating Datatrak’s patent. The Datatrak board acknowledges that its pursuit of this aggressive litigation strategy was “expensive” and a “key component” of the board’s overall strategy for the company. Arosa believes this is yet another example of the reckless and costly decisions made by the Datatrak board and the urgent need for change at the board level.
Arosa intends to vindicate the fundamental rights of Datatrak’s shareholders to elect new directors. Arosa will not be intimidated or dissuaded by the Datatrak board’s shameless and appalling entrenchment actions and will fight in whatever forum is necessary to prevail for shareholders. Arosa’s director candidates received the most votes in the election, and Arosa intends to enforce that victory for shareholders.
Arosa would like to thank the many Datatrak shareholders and employees who have expressed support for our efforts. Arosa asks for your continued support as we fight to require the Datatrak board to honor the fundamental right of shareholders to elect the company’s directors.