Biopharm Co. Investors Sue Directors In Chancery Over Pay
Law360 (September 17, 2018, 8:41 PM EDT) -- Investors in biopharmaceutical company Abeona Therapeutics Inc. sued the company’s nonemployee directors and top officers on the company’s behalf Monday, alleging in Delaware Chancery Court that nonemployee board members are “grossly” overcompensated despite woeful business performance.
Shareholder Francisco Dos Ramos said in the derivative action that five nonemployee directors receive an average $581,333 annually, more than double the average total director compensation for S&P 500 companies and businesses with market capitalizations of more than $5 billion.
Abeona is a Russell Microcap Index stock with less than $700 million in market capitalization, according to the suit, and a record of annual losses...
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