A Darden Restaurants shareholder filed suit against the company's board of directors on Monday, citing a recent CNBC.com article as evidence that the board brought harm to the company by selling its Red Lobster restaurant division.
The suit, filed in a Florida state court by Teamsters Local 443 Health Services & Insurance Plan of Connecticut, argues that the board of directors of the Florida-based company knowingly approved the sale of Red Lobster at a "fire sale" price in order to protect their jobs.
The Teamsters cite an Aug. 19 CNBC story that revealed a confidential debt offering document issued by Red Lobster while it was still part of Darden in June. The document, which was used to market a $425 million loan to potential investors, said Red Lobster had suffered short-term problems that would soon turn around, leading to higher profits.
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