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Article: Dillard's Inc. shareholders try new tack.
- Article from:
- Arkansas Business
- Article date:
- July 6, 2009
- Author:
CopyrightCOPYRIGHT 2009 Journal Publishing, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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HOSTILE DILLARD'S INC. investors are trying a new approach to get the attention of the retailer's board of directors.
Since May, two derivative lawsuits have been filed that accuse the Little Rock retail chain's directors of mismanagement and breach of fiduciary duty for allowing Dillard's to lag behind other retailers while paying above-average salaries to company executives.
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In a derivative lawsuit, shareholders sue on behalf of the company. If investors win, the board members will be responsible for paying the judgment and the money will go to the company, not the plaintiffs. The plaintiffs, though, benefit because the ...