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

Odaily Odaily A retail shareholder of GameStop 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 information is disclosed to shareholders.

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

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