SAN DIEGO & SAN ANTONIO--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that purchasers of Biglari Holdings Inc. (NYSE: BH) have filed a class action complaint against the company's officers and directors for alleged breaches of fiduciary duties and unjust enrichment. Biglari Holdings, through its subsidiaries, operates and franchises restaurants in the United States.
View this information on the law firm's Shareholder Rights Blog:
Biglari Holdings Accused of Reorganizing at Shareholders' Expense
According to the complaint, Sardar Biglari is the company's Chief Executive Officer and Chairman who beneficially owns approximately 52.5% of Biglari's outstanding stock and engages in myriad lucrative related-party transactions with himself and his immediate family. According to the complaint, Mr. Biglari has hatched a plan to reorganize the company's corporate structure to ensure he remains permanently in control of the company. In November 2016, Mr. Biglari proposed to the Board that the company implement a dual-class capital structure, and the Board's Governance, Compensation and Nominating Committee recommended the Board adopt and approve the proposal. A dual-class structure will allow the company to issue low-vote shares in future stock-for-stock acquisitions that would cause little to no dilution of Mr. Biglari's equity stake. Mr. Biglari will secure indefinite control over the company as a result of the reorganization. Since Mr. Biglari is a majority shareholder, all other votes on the harmful transaction are rendered meaningless.
Biglari Holdings Shareholders Have Legal Options
If you would like more information about your rights and potential remedies, contact attorney Leonid Kandinov at (800) 350-6003, LKandinov@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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