Daktronics (DAKT) shareholder Alta Fox Capital Management said Wednesday that it has filed a lawsuit against the company and its chief executive officer, Reece Kurtenbach, to block the company's plan to reincorporate in Delaware.
Alta Fox, which owns 11.7 %of Daktronics, said it has filed a preliminary proxy statement urging shareholders to vote against the reincorporation proposal at an upcoming special meeting.
Alta Fox said the timing of the proposal indicates that it is intended to thwart Alta's efforts to nominate new board members. The firm also criticized Daktronics' governance practices, such as its classified board structure and use of a poison pill.
Alta Fox said that if the lawsuit is successful, it plans to call a special meeting to push for board declassification, poison pill removal, and the election of new directors.
Daktronics did not immediately respond to MT Newswires' request for comment.
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