SAN DIEGO & ST. LOUIS--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP is investigating whether certain officers and directors of Build-A-Bear Workshop, Inc. (NYSE: BBW) violated their legal obligations to the company and its shareholders in connection with alleged breaches of their fiduciary duties regarding Build-A-Bear's corporate governance practices. Build-A-Bear operates as a specialty retailer of plush animals and related products.
View this press release on the law firm's Shareholder Rights Blog: www.robbinsarroyo.com/shareholders-rights-blog/build-a-bear-workshop-inc
Build-A-Bear Engages in Questionable Corporate Governance Practices
On May 3, 2016, Build-A-Bear reported its first quarter results, announcing a strategic review of the company, including the option of selling. Notably, Build-A-Bear is in dispute with activist investor firm Cannell Capital LLC ("Cannell"), which has accused the company of engaging in financially unsophisticated and shareholder unfriendly actions. For example, Cannell argued that Build-A-Bear's decision to allow its Chief Executive Officer ("CEO") to approve or reject candidates for membership on the board of directors will interfere with its independence and ability to oversee the company's management and executive compensation. Cannell also took issue with the board of directors' approval of increased executive compensation, noting that Build-A-Bear rewarded its already well-paid management with unnecessarily rich employment and service agreements, including a 20% increase in pay for CEO Sharon John.
Build-A-Bear Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at 800-350-6003, DDonahue@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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