Martha Stewart Living Omnimedia Inc. (MSO:US) was sued by a shareholder over a proposed increase in the number of shares in a stock option plan.
Investor Helene Hutt filed the lawsuit today in New York State Supreme Court in Manhattan, accusing the New York-based company and its directors of violating their fiduciary duties of “care, loyalty and good faith” and putting their personal interests ahead of those of stockholders.
The company in a regulatory filing earlier this month recommended that investors at its May 23 annual meeting approve a proposed amendment to its omnibus stock and option compensation option plan that would increase the number of shares reserved for issuance by 4.6 million, Hutt said in the complaint.
Hutt, who is seeking class-action status on behalf of other shareholders, is requesting unspecified damages and asking the court to stop the company from putting the proposal to a vote.
Jeanne Meyer, a spokeswoman for Martha Stewart Living, declined to comment on the complaint, saying the company hasn’t reviewed it yet.
The case is Hutt v. Martha Stewart Living Omnimedia Inc., 651249/2011, New York State Supreme Court (Manhattan).
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