Edward and Ludmila Smolyansky, who together exercise voting control over approximately 29.7% of Lifeway Foods' common stock, called on November 22, 2024, for the board of directors to establish an independent special committee. This committee would be tasked with evaluating and negotiating a transaction with Danone or other potential buyers.
The founding shareholders cited CEO Julie Smolyansky's stated opposition to a sale and her spouse Jason Burdeen's involvement as chief of staff as significant personal conflicts of interest. They urged the board to ensure Mr. Burdeen is not involved in the evaluation of Danone's proposal.
Furthermore, they alleged that Lifeway is threatening to file a lawsuit against Danone to invalidate a stockholders agreement and called for the disclosure of any valuation analysis provided by Kroll to the Audit and Corporate Governance Committee. These actions highlight escalating governance concerns and internal disputes.
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