GameStop investors file a lawsuit to block the vote on the $3.5 billion compensation package for the CEO

Odaily reports that a GameStop retail investor has filed a class action lawsuit in the Delaware Court of Chancery, seeking to block a vote on CEO Ryan Cohen's $3.5 billion compensation package until proper information is disclosed to shareholders.

The lawsuit claims that GameStop's board repeatedly amended procedures related to the shareholder vote—including whether Ryan Cohen could cast votes with his 9.3% stake and how abstentions would be counted—prior to issuing a misleading proxy statement, with the intention of depressing the voting rate among public investors.

Shareholders had originally planned to vote on the compensation package on July 7. If the company reaches a $10 billion market capitalization and $10 billion in cumulative EBITDA, Ryan Cohen would receive a $3.5 billion stock option award. (Bloomberg)