– Lululemon founder Chip Wilson has ramped up his campaign against the board of Lululemon Athletica, accusing its board of directors of weak governance and ‘strategic drift’ as he presses for widespread boardroom changes.
As reported by The Wall Street Journal (paywall), Wilson wrote in a letter to shareholders that months of private engagement with the board had failed to produce meaningful reforms, arguing the company lacks the creative and brand expertise needed to sustain growth.
Wilson launched a proxy fight in December and hopes to replace three directors with his nominees: former On Running co-CEO Marc Maurer, former ESPN marketing chief Laura Gentile and former Activision executive Eric Hirshberg. He says the changes are necessary to restore innovation and strengthen oversight while the company searches for a new chief executive.
The board has rejected Wilson’s description of events, saying it has engaged with him in good faith and remains open to dialogue with shareholders as it focuses on long-term value creation.
– A US federal judge has approved a settlement resolving a dispute between the SEC and Pfizer tied to a long-running insider trading case involving the former hedge fund SAC Capital Management, once run by investor Steven Cohen.
According to Reuters (paywall), US District Judge Victor Marrero in Manhattan approved a deal awarding Pfizer $29 mn from remaining funds after SAC’s $601.8 mn SEC settlement over illegal trades in drugmakers Wyeth and Elan enacted by former SAC portfolio manager Mathew Martoma.
The payment resolves a dispute over $75.2 mn left over after investors harmed by the trades were compensated.
Under the settlement, Pfizer agreed to drop its appeal of a prior ruling that directed the funds to the US Treasury. The Treasury will now receive the remaining $46.2 mn.
– US regulators have said that banks will not face additional capital requirements for holding or dealing in tokenized securities, reinforcing a ‘technology-neutral’ approach to financial regulation, as reported by Reuters.
In joint guidance the Federal Reserve, Federal Deposit Insurance Corporation and Office of the Comptroller of the Currency, lawmakers said blockchain-based securities should generally receive the same capital treatment as their traditional counterparts.
The group said the method used to issue, record or transfer a security, such as distributed ledger or blockchain technology, should not by itself alter how banks calculate regulatory capital.
– SoftBank’s digital payments arm PayPay has delayed the launch of its planned US IPO, highlighting the fragile state of global equity markets.
According to Bloomberg (paywall), the fintech company had been expected to begin its IPO roadshow and release a prospectus detailing its pricing range, but executives opted to postpone the launch as volatile market conditions dampened investor appetite.
The delay follows sharp swings in global markets linked to escalating geopolitical tensions in the Middle East, which have pushed investors toward safer assets and reduced demand for new listings.
PayPay, backed by SoftBank Group, is pursuing what could become one of the largest US listings by a Japanese fintech company. It has been targeting a valuation of up to about $13.4 bn and aims to raise roughly $1.1 bn through the sale of US depositary receipt shares on Nasdaq.
– Shopping center operator Whitestone REIT has attracted takeover interest from several private equity firms while simultaneously facing mounting pressure from activist investors seeking board changes.
According to Reuters, potential bidders including Blackstone and TPG have signed confidentiality agreements to review company materials as they evaluate possible offers. The trust has hired Bank of America to oversee the process.
Whitestone has recently been notified it could face two proxy fights for board seats, including a campaign launched by Emmett Investment Management, which nominated four directors to replace most of its six-member board. Former Whitestone CEO James Mastandrea has also backed plans to nominate his own slate.
Separately, major shareholder MCB Real Estate, which owns more than 9 percent of the company, previously offered to acquire Whitestone for $15.20 per share.
– Shareholders have filed a proposed class-action lawsuit against Apollo Global Management and its billionaire co-founders Leon Black and Marc Rowan, alleging the private equity firm misled investors about its ties to Jeffrey Epstein.
According to Reuters, the complaint claims Apollo and its leadership concealed business dealings with Epstein for nearly five years, causing investors to purchase shares at inflated prices.
According to the lawsuit, the firm’s public filings and statements in 2021 and 2022 denied having a business relationship with Epstein, despite alleged communication between him and senior Apollo leadership relating to company matters.
Investors say the statements were materially misleading and exposed Apollo to reputational and financial risk once Epstein-related documents and communications surfaced publicly.
Apollo has previously maintained that only Black had a relationship with Epstein, primarily surrounding tax and estate planning work, and that other executives did not maintain business ties with the financier. The firm and its executives are expected to deny the allegations.