Ron Burkle will appeal the decision made last month by the Delaware Court of Chancery that dismissed the lawsuit filed by Burkle’s Yucaipa Companies against Barnes & Noble’s poison pill rights plan. In the ruling, the court found that the B&N board acted appropriately in passing the provision. In its statement announcing its intention to appeal, Yucaipa hammered away at the theme that B&N is controlled by the Riggio family to the detriment of other shareholders.
“We believe that the important stockholders’ rights at issue in our suit against the Riggio-dominated Barnes & Noble Board – equal treatment of stockholders and the right of stockholders to freely and effectively vote to elect independent directors – should be decided by the Delaware Supreme Court,” a Yucaipa spokesperson said.
Yucaipa said it decided to appeal after B&N chairman Len Riggio bought an additional 990,740 B&N shares by exercising options. Although Riggio said he will not vote those options at the annual meeting, Yucaipa said the court’s original ruling was based on the belief Riggio would not exercise more options, and with the purchases the conditions of the ruling of changed.
A spokeswoman for B&N said in a statement, "We are not surprised Mr. Burkle cannot accept defeat in the baseless litigation he brought against Barnes & Noble, and that he would now force the company to incur further legal costs."
