A shareholder in Foot Locker, Robert Garfield, has filed suit in New York State Supreme Court to challenge Foot Locker’s sale to Dick’s Sporting Goods. The defendants in the case are Dick’s, Foot Locker, Foot Locker CEO Mary Dillon and directors on Foot Locker’s board.
The meat of Garfield’s allegation is that the proposed sale “substantially undervalues the Company’s [Foot Locker’s] intrinsic value, existing book of business and future upside.” He also alleges that, because of an incomplete proxy statement, the two companies have failed to disclose conflicts of interest for Foot Locker’s directors; in his view, then, there has been a breach of fiduciary duties.
Our colleagues at the American edition of SGI have run a similar story.
