A lawsuit was filed by an investor in Biglari Holdings Inc (NYSE:BH) shares over alleged breaches of fiduciary duties and current long-term NYSE:BH stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 07/15/2013 -- An investor, who currently holds NYSE:BH shares, filed a lawsuit against the CEO of Biglari Holdings Inc over alleged breached their fiduciary duties in connection with certain business dealings between Biglari Holdings and the Chairman and CEO, Sardar Biglari.
Investors who are current long-term stockholders of shares of Biglari Holdings Inc (NYSE:BH), have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
The plaintiff claims that the CEO of Biglari Holdings Inc breached his fiduciary duty when he made a licensing deal with himself that would make it too expensive for Biglari Holdings Inc to ever fire him.
On November 5, 2010, the board of directors of Biglari Holdings Inc approved a compensation package for its Chairman and CEO, providing for a salary of $900,000 and additional payments of up to $10 million each year the company's book value increases by 6%.
On January 11, 2013, Biglari Holdings Inc announced that the company had entered into a Trademark License Agreement with its Chairman and CEO. According to the agreement, the company must pay its Chairman and CEO 2.5% of the company's gross revenues for five years if there is a change of control at Biglari Holdings Inc, if its Chairman and CEO is terminated from the company without cause, or if its Chairman and CEO resigns from his employment at the company due to an involuntary termination event.
Biglari Holdings Inc reported that its Total Revenue rose from $709.20 million for the 52 weeks period that ended on Sept.28, 2011 to $740.21 million for the 52 weeks period that ended on Sept. 26, 2012 and that its Net Income for those time periods declined from $34.56 million to $21.59 million.
On July 12, 2013, NYSE:BH shares closed at $418.70 per share.
Those who are current long-term stockholders of Biglari Holdings Inc (NYSE:BH) shares have certain options and should contact the Shareholders Foundation.
Contact:
Shareholders Foundation, Inc.
Trevor Allen
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com