Edward and Ludmila Smolyansky Request Lifeway Foods Inc. NASDAQ (LWAY) CEO Julie Smolyansky Immediately Withdraws Her Lawsuit Against Edward Smolyansky. Reiterate and Reaffirm Singular Goal Amid Ongoing Activism Battle
Edward and Ludmila Smolyansky, controlling approximately 28% of Lifeway Foods (NASDAQ: LWAY) shares, have demanded CEO Julie Smolyansky withdraw her lawsuit against Edward Smolyansky. This follows a $2 million retention bonus awarded to Julie Smolyansky by the Compensation Committee in December 2024.
The Founding Shareholders question the independence of directors Jason Scher and Pol Sikar, citing their personal ties to Julie Smolyansky. They plan to expand their investigation that began in 2019, following the departure of two CFOs in 2018 and subsequent departures of two independent directors and the company's general counsel.
Ludmila Smolyansky began selling shares on January 3 to defend Edward after Lifeway's legal counsel allegedly refused to provide paperwork for Edward to monetize his holdings under their 1999 Shareholders Agreement with Group Danone. The activist campaign launched in 2022 has reportedly increased LWAY's share price, despite ongoing management conflicts.
Edward e Ludmila Smolyansky, che controllano circa il 28% delle azioni di Lifeway Foods (NASDAQ: LWAY), hanno chiesto al CEO Julie Smolyansky di ritirare la sua causa contro Edward Smolyansky. Questo seguito a un bonus di retention di 2 milioni di dollari assegnato a Julie Smolyansky dal Comitato di Compensazione nel dicembre 2024.
Gli Azionisti Fondatori mettono in dubbio l’indipendenza dei direttori Jason Scher e Pol Sikar, citando i loro legami personali con Julie Smolyansky. Intendono espandere la loro indagine iniziata nel 2019, a seguito delle dimissioni di due CFO nel 2018 e delle successive dimissioni di due direttori indipendenti e del consulente legale generale dell'azienda.
Ludmila Smolyansky ha iniziato a vendere azioni il 3 gennaio per difendere Edward, dopo che il consulente legale di Lifeway avrebbe rifiutato di fornire la documentazione necessaria per permettere a Edward di monetizzare le sue partecipazioni in base all'Accordo degli Azionisti del 1999 con il Gruppo Danone. La campagna attivista lanciata nel 2022 ha riportato un aumento del prezzo delle azioni LWAY, nonostante i conflitti di gestione in corso.
Edward y Ludmila Smolyansky, que controlan aproximadamente el 28% de las acciones de Lifeway Foods (NASDAQ: LWAY), han exigido a la CEO Julie Smolyansky que retire su demanda contra Edward Smolyansky. Esto sigue a un bono de retención de 2 millones de dólares otorgado a Julie Smolyansky por el Comité de Compensación en diciembre de 2024.
Los Accionistas Fundadores cuestionan la independencia de los directores Jason Scher y Pol Sikar, citando sus lazos personales con Julie Smolyansky. Planean ampliar su investigación que comenzó en 2019, tras la salida de dos CFO en 2018 y las posteriores salidas de dos directores independientes y el consejero general de la empresa.
Ludmila Smolyansky comenzó a vender acciones el 3 de enero para defender a Edward, luego de que el asesor legal de Lifeway supuestamente se negó a proporcionar la documentación necesaria para que Edward pudiera monetizar sus participaciones bajo su Acuerdo de Accionistas de 1999 con el Grupo Danone. La campaña activista lanzada en 2022 supuestamente ha aumentado el precio de las acciones de LWAY, a pesar de los conflictos de gestión en curso.
에드워드와 루드밀라 스몰리안스키는 Lifeway Foods(NASDAQ: LWAY)의 약 28%의 주식을 소유하고 있으며, CEO 줄리 스몰리안스키에게 에드워드 스몰리안스키에 대한 소송을 철회할 것을 요구했습니다. 이는 2024년 12월 보상 위원회가 줄리 스몰리안스키에게 200만 달러의 유지 보너스를 수여한 것에 따른 것입니다.
창립 주주들은 제이슨 셰어 및 폴 시카르 이사의 독립성을 의문시하며, 그들의 개인적인 연관성을 언급하고 있습니다. 그들은 2018년 CFO 두 명의 퇴사와 이어진 두 명의 독립 이사 및 회사의 법률 고문의 퇴사 후 2019년에 시작된 조사를 확대할 계획입니다.
루드밀라 스몰리안스키는 1월 3일에 에드워드를 방어하기 위해 주식을 판매하기 시작했습니다. 이는 Lifeway의 법률 자문이 에드워드가 1999년 다논 그룹과 체결한 주주 계약에 따라 보유 주식을 현금화할 수 있도록 필요한 문서를 제공하는 것을 거부했기 때문입니다. 2022년에 시작된 활동가 캠페인은 현재 진행 중인 경영 갈등에도 불구하고 LWAY의 주가를 상승시킨 것으로 알려져 있습니다.
Edward et Ludmila Smolyansky, contrôlant environ 28% des actions de Lifeway Foods (NASDAQ: LWAY), ont demandé au PDG Julie Smolyansky de retirer sa plainte contre Edward Smolyansky. Cela fait suite à un bonus de fidélisation de 2 millions de dollars accordé à Julie Smolyansky par le Comité de Rémunération en décembre 2024.
Les Actionnaires Fondateurs remettent en question l'indépendance des directeurs Jason Scher et Pol Sikar, citant leurs liens personnels avec Julie Smolyansky. Ils prévoient d'élargir leur enquête, qui a commencé en 2019, après le départ de deux CFO en 2018 et les départs ultérieurs de deux directeurs indépendants et du conseiller général de l'entreprise.
Ludmila Smolyansky a commencé à vendre des actions le 3 janvier pour défendre Edward après que le conseil juridique de Lifeway aurait refusé de fournir la documentation nécessaire à Edward pour monétiser ses participations en vertu de leur Accord d'Actionnaires de 1999 avec le Groupe Danone. La campagne d'activisme lancée en 2022 aurait apparemment augmenté le prix des actions de LWAY, malgré les conflits de gestion persistants.
Edward und Ludmila Smolyansky, die etwa 28% der Anteile an Lifeway Foods (NASDAQ: LWAY) kontrollieren, haben von CEO Julie Smolyansky gefordert, ihre Klage gegen Edward Smolyansky zurückzuziehen. Dies folgt einem Retentionsbonus von 2 Millionen Dollar, der im Dezember 2024 von dem Vergütungsausschuss an Julie Smolyansky vergeben wurde.
Die Gründungsaktionäre stellen die Unabhängigkeit der Direktoren Jason Scher und Pol Sikar in Frage und verweisen auf ihre persönlichen Verbindungen zu Julie Smolyansky. Sie planen, ihre 2019 begonnene Untersuchung auszuweiten, die nach dem Rücktritt von zwei CFOs im Jahr 2018 und den anschließenden Rücktritten von zwei unabhängigen Direktoren sowie dem General Counsel des Unternehmens eingeleitet wurde.
Ludmila Smolyansky begann am 3. Januar, Aktien zu verkaufen, um Edward zu verteidigen, nachdem Lifeways Rechtsberatung angeblich die Bereitstellung von Unterlagen abgelehnt hatte, die Edward ermöglichen sollten, seine Anteile gemäß ihrer Aktionärsvereinbarung von 1999 mit der Groupe Danone zu monetisieren. Die 2022 gestartete Aktivistenkampagne hat Berichten zufolge den Aktienkurs von LWAY erhöht, trotz anhaltender Managementkonflikte.
- Activist campaign since 2022 has led to significant increases in share price
- Founding shareholders control 28% of voting power
- $2 million retention bonus awarded to CEO amid corporate disputes
- Internal governance issues with multiple executive departures
- Legal disputes between major shareholders and management
- Potential conflicts of interest among board members
Insights
The unfolding situation at Lifeway Foods presents a textbook case of corporate governance dysfunction that should concern investors. The conflict centers on a
Several red flags warrant investor attention:
- The rapid turnover of two CFOs in 2018, followed by departures of independent directors and general counsel, suggests potential internal control issues
- The timing correlation between the retention bonus (December 23) and subsequent lawsuit (January 23) raises questions about the proper use of corporate resources
- Allegations of board member conflicts due to personal relationships could compromise independent oversight
- The public nature of this family dispute risks destabilizing business operations and eroding shareholder value
While the activist campaign has reportedly driven share price appreciation, the escalating governance crisis presents material risks. The inability of major shareholders to monetize their holdings due to apparent administrative obstacles further complicates the situation. Investors should monitor this situation closely, as the outcome of this power struggle will likely determine the company's strategic direction and governance structure.
The legal complexities in this case present significant risks for Lifeway Foods and its shareholders. The timing and circumstances surrounding the
Critical legal considerations include:
- The 1999 Shareholders Agreement with Group Danone appears to be creating obstacles for share monetization, which could lead to additional litigation
- The alleged refusal to provide necessary paperwork for share transactions could constitute improper interference with shareholder rights
- Board members' personal relationships with the CEO may create exposure to claims of breach of fiduciary duty
- The multiple layers of litigation risk depleting corporate resources and diverting management attention from business operations
The situation appears ripe for regulatory scrutiny, particularly regarding corporate governance practices and potential conflicts of interest. Shareholders should anticipate prolonged legal battles that could significantly impact company value and operations.
- Summarizes recent filings and next steps, previews upcoming proxy schedule
- Reaffirms and updates previously stated goal
On December 23, 2024, Lifeway's Compensation Committee, led by director Jason Scher, awarded what was described as a
Edward Smolyansky said, "Lifeway seems determined to plunge the Company deeper and deeper into litigation this time via proxy by Julie. We look forward to providing all shareholders a fully transparent accounting of the inner workings of America's Worst Governed Publicly Traded Company."
Ludmila Smolyansky stated, "After they cut a check to Julie for
The activist campaign that The Smolyanskys launched in 2022 has produced significant increases in the value of Lifeway's share price, yet Julie and her Board seem determined to obstruct the ability to monetize these assets and prohibit making significant charitable contributions. For example, last May, the charitable arm of the Founding Shareholders' new organization, Pure Culture Organics, announced its commitment to the Ann & Robert H. Lurie Children's Hospital of
Ludmila Smolyansky stated, "While my daughter's Board can attempt to interfere with our philanthropic efforts, these are mere speed bumps on the road to our singular goal, fresh new management and new independent slate of Directors."
For more information and update to date news connect with Edward on LinkedIn @ Edward Smolyansky and visit www.lifebacktolifeway.com to learn more about the Proxy Campaign.
View original content:SOURCE Edward and Ludmila Smolyansky
FAQ
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