GameStop investor sues to block vote on CEO's $3.5 billion compensation package

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

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

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