HG Vora Capital Management, one of PENN Entertainment’s activist investors, has accused the latter company of violating the law by reducing the board seats for election at its upcoming shareholder meeting. HG Vora now seeks an injunction that would make PENN’s recent Board Reduction Scheme invalid.
HG Vora Says PENN Violated PA Business Laws
PENN Entertainment recently announced that it plans to reduce the number of seats for election at its upcoming Annual Meeting of Shareholders. Under the change, the seats for election have been reduced from three to two. This controversial move, however, attracted the ire of one of its investors, which is now seeking legal retribution.
HG Vora just filed a complaint in the US District Court for the Eastern District of Pennsylvania, alleging that PENN Entertainment has committed a violation by reducing the number of seats for election.
According to the complaint, PENN Entertainment has violated the Pennsylvania Business Corporation Law by opting to reduce the number of seats for