L3Harris Sued Over Board Vote Pact With Billionaire Activist

A shareholder is suing L3Harris Technologies Inc. over a cooperation agreement its board allegedly reached to head off a potential proxy fight with billionaire activist investor David E. Shaw.

The lawsuit, filed Monday, challenges a section of the pact that allegedly requires L3’s directors to recommend a shareholder vote in favor of two board nominees proposed by funds affiliated with Shaw. The provision, adopted in December, mirrors a “nearly identical” clause recently invalidated in a landmark court ruling involving investment bank Moelis & Co., according to the complaint.

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