Bloomberg Law
Aug. 26, 2021, 7:56 PM

Roku Sued by Investor Over Allegedly Spring-Loaded Option Awards

Mike Leonard
Mike Leonard
Legal Reporter

A Roku Inc. investor sued it in Delaware, seeking to investigate claims that company leaders spring-loaded 2019 equity awards to themselves by issuing the options just before strong earnings and projections drove its stock up 35% in a few days and powered a 300% increase over the next two years.

The lawsuit, filed Wednesday in Delaware Chancery Court, seeks internal company files that would allegedly reveal what CEO Anthony J. Wood and other members of Roku’s board and management knew about the forthcoming earnings report and revenue guidance when they approved the grants.

The options, worth millions, were issued at ...

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