An investor sued Traeger Inc.'s board and backers, challenging a pact that allegedly gives a veto over the grill maker’s choice of CEO to private-equity affiliates of AEA Investors LP and the Ontario Teachers’ Pension Plan.
The lawsuit, filed Tuesday, targets a clause in their stockholders agreement with Traeger that allegedly lets them overrule any decision by its directors to hire or fire a chief executive so long as they collectively own at least 30% of the company. The provision violates Delaware laws vesting authority over a corporation’s senior management with its board, according to the 11-page complaint.
“It is ...
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