FedEx Investor Sues Board Over $35M Cigarette Penalty

Law360 (August 15, 2019, 11:38 AM EDT) -- A FedEx Corp. stockholder sued the company’s directors in Delaware’s Chancery Court late Wednesday over alleged years of oversight failures that led to a $35 million, three-suit settlement last year with New York’s attorney general over a yearslong pattern of illegal cigarette shipments.

The derivative lawsuit, filed by investor Frederick A. Johns, targeted alleged company failure to properly respond to demands dating to 2014 to investigate and pursue claims over board inaction on the wide-ranging state and federal violations.

Compensation sought from the named directors included repayment for the $35 million settlement and prosecution expenses, corporate governance reforms and disgorgement of...

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