While Xerox is still dealing with an ongoing lawsuit filed by Darwin Deason, the company is facing another lawsuit where Darwin Deason is seeking to nominate a board of directors on the company’s board, as supported by Carl Icahn.
According to the lawsuit, the deadline of December 2017 was to be waived off. This deadline was for the shareholders to meet to nominate directors, before Xerox’s annual meeting. The waiver was because of “radical” changes, which according to the lawsuit, had caused many changes in the organization.
By the end of January, it was announced that Fuji will be holding 50.1 percent of Xerox, the agreement of which was concealed for 17 years from Xerox shareholders, according to Deason. According to the agreement, Fuji would be controlling Xerox’s intellectual property and manufacturing rights.
Deason happens to be the third largest shareholder in Xerox. He is now seeking to nominate 10 directors into Xerox’s board. Initially, Deason had asked to waive off the deadline date, which was clearly rejected by Xerox. Sources have indicated that Deason could be a potential CEO of the company.
In a letter to Xerox shareholders, Deason and Icahn stated, “We believe the Board is so scared that they will use every technical advantage at their disposal to thwart our efforts to prevent control of this venerable American icon from being sold on the cheap.”
After this news, the shares of Xerox declined by 1.4 percent.