LOS ANGELES, Oct. 28 /PRNewswire/ -- Largest EMAK common shareholder and board member Donald A. Kurz, and fellow large shareholder Sems Diversified Value, LP, filed suit on Monday in the Delaware Court of Chancery to prevent the preferred stockholder, Crown EMAK Partners, LLC, from voting with common stockholders in the recently launched consent solicitation. The suit seeks preliminary and permanent injunctive relief to ensure a fair election.
The lawsuit alleges that EMAK's board improperly responded to Take Back EMAK, LLC's consent solicitation by granting Crown enhanced voting power for no consideration. The lawsuit further alleges that the challenged transaction created a stealth "poison pill", by triggering a greater than $25 million payment obligation to Crown if Mr. Kurz or anyone affiliated with him purchases additional shares of EMAK stock.
Mr. Kurz commented, "If the preferred stockholder wants to be aligned with the common stockholder, they have a clear path as specified in their contract -- convert their preferred stock to common stock. Instead, this exchange transaction grants Crown effective control over the composition of the entire Board with their new 28% voting block. This continues the Board's pattern of disdain for the common stockholders and shows they will go to any length to entrench themselves. I am confident that the Delaware courts will not allow this sham transaction to stand."
Take Back EMAK, LLC urges all stockholders to sign the white consent cards they should have received in the mail to remove three current directors and replace them with three new qualified and committed directors to the Board. For more information visit TakeBackEMAK.com.
Take Back EMAK, LLC
CONTACT: Media and Investor Inquiries, Jenn Hertzig, +1-310-584-7334,info@TakeBackEMAK.com, or Voting Inquiries, 1-800-769-4414,TakeBackEMAK@dfking.com
