A shareholder lawsuit is seeking to delay GameStop's July 7 vote on CEO Ryan Cohen's compensation package, which could lead to a $35 billion incentive award. The court filing accuses the company of a bait-and-switch, alleging that GameStop changed voting rules and issued a misleading proxy statement. The dispute raises questions about corporate governance and disclosure practices at a time when GameStop is coming off a strong quarter with net sales up 14% year-over-year to $835.3 million and net income surging to $389.6 million. The company is sitting on approximately $8.4 billion in cash, cash equivalents, and marketable securities, and has pursued new initiatives including a digital trading card platform and a non-binding proposal to acquire eBay for roughly $55.5 billion. Despite improved fundamentals, analysts remain cautious with an average price target of $13.50, implying a 37.3% downside from recent levels.
GameStop Corp.Shareholder lawsuit seeks to delay vote on CEO pay package, alleging governance issues and misleading proxy.
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