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

Odaily Planet Daily News 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 plan until proper disclosures are made to shareholders.

The lawsuit alleges that GameStop's board repeatedly amended procedures related to the shareholder vote before issuing a misleading proxy statement, including whether Ryan Cohen could vote his 9.3% stake and how abstentions would be counted, an effort aimed at suppressing retail voter turnout.

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