GameStop investors sue to block vote on CEO's $3.5 billion compensation package

Odaily A GameStop retail investor has filed a class action lawsuit in the Delaware Court of Chancery, seeking to block a vote on CEO Ryan Cohen's $3.5 billion compensation package until proper disclosures are made to shareholders.

The lawsuit alleges that GameStop's board repeatedly modified procedures related to the shareholder vote, including whether Ryan Cohen could cast his 9.3% stake and how abstentions would be counted, before issuing a misleading proxy statement, in an effort to suppress public investor turnout.

Shareholders were originally scheduled to vote on the compensation plan on July 7. If the company achieves a $10 billion market capitalization and $10 billion in cumulative EBITDA, Ryan Cohen would receive stock option awards worth $3.5 billion. (Bloomberg)