Bob Evans Bylaw Change Curbs Investors' Rights, Suit Says

Law360, Wilmington (January 14, 2014, 3:03 PM EST) -- Activist investor Sandell Asset Management Corp. on Tuesday sued Bob Evans Farms Inc. — which Sandell has been pressuring to change its business strategy — for allegedly trampling shareholders’ rights by amending the company’s bylaws.

In a suit in the Delaware Court of Chancery, Sandell claims Bob Evans’ board voted to impose an 80-percent voting threshold for stockholders to amend the bylaws, less than three months after investors signaled their support for a simple-majority requirement.

Sandell says the push for a simple majority threshold was part...
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