Rocky Mountain Chocolate Sued by Hedge Fund Over Board Fight (1)

Sept. 23, 2021, 8:13 PMUpdated: Sept. 23, 2021, 9:49 PM

AB Value Partners LP filed suit in Delaware on Thursday against Rocky Mountain Chocolate Factory Inc. and most of its directors, claiming they unilaterally shrank the board’s size just weeks before a shareholder vote on a dissident director slate nominated by the activist hedge fund.

The lawsuit, filed in Delaware Chancery Court, accuses the company’s current board of exploiting the abrupt retirement of one member—the only one acceptable to both sides of the proxy fight—by eliminating her seat so it can’t be filled by any of AB Value’s nominees.

If not for those “unlawful actions, one of plaintiffs’ director candidates ...

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