The Herrick Foundation, which was defeated in a proxy challenge to incumbent management at Tecumseh Products last month, has won a victory in court.
Herrick filed a lawsuit demanding injunctive relief against the compressor manufacturer's recapitalization plans, which would have significantly diluted Herrick's voting rights.
The judge of a Michigan state court, Timothy Pickard, granted a preliminary injunction on December 24, finding "substantial likelihood" that the plaintiff would prevail in its claims that the stock split is inequitable, without compelling justification, and a violation of the company charter.
Herrick Foundation spokesman Jeff Caponigro issued this response: "Tecumseh likes to portray Herrick Foundation's dispute as simply a vendetta against the company when, in reality, it is the company's own vendetta toward the Herrick's that has led it to repeatedly take improper actions that are negatively impacting all company shareholders."
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