LOS ANGELES – Browning West Investment Partnership, LP, owning approximately 5% of shares Gildan Activewear Inc. . (NYSE: NYSE:) (TSX: GIL) has filed proceedings in the Quebec Superior Court against Gildan and its board of directors.
The lawsuit filed today seeks to ensure that Gildan’s upcoming annual meeting, to be held on May 28, 2024, proceeds without delay or interference as Browning West alleges the Board of Directors engaged in conduct that undermines shareholder rights.
The investment firm accuses Gildan’s board of directors of a variety of retaliatory tactics, including leaking confidential information, improperly obtaining proxies and engaging in frivolous lawsuits to delay shareholder action. Browning West also alleges that the board of directors made misleading statements regarding the firing of Gildan’s founder and the appointment of a new CEO, Vincent Tyra.
Browning West representatives Usman S. Nabi and Peter M. Lee argue that the Council’s actions are self-preserving and destructive of values. They asked the Quebec Superior Court to enforce the scheduled date for the annual meeting and appoint an independent chair to oversee it, ensuring a fair and transparent voting process.
The firm also began sending out a circular to Gildan shareholders urging them to support the changes at the board level. Browning West’s approach is to communicate directly with shareholders to advocate for what they call needed changes within the company.
The lawsuit is part of Browning West’s broader strategy to exercise its rights as a major shareholder and influence Gildan’s future direction. The firm has outlined its intentions to make changes to its Board of Directors and management, although it acknowledges that these actions involve risks and uncertainties.
Browning West has retained Olshan Frome Wolosky LLP, Goodmans LLP and IMK as legal counsel, Longacre Square Partners and Pelican PR as consultants, and Carson Proxy to provide proxy services.
The information in this report is based on the press statement and reflects only the facts presented therein. The outcome of the trial and the potential impact on Gildan’s management and future direction remains to be seen.
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