Omega Protein Corporation
Robbins Arroyo LLP: Omega Protein Corporation (OME) Misled Shareholders According to a Recently Filed Shareholder Derivative Action
Robbins Arroyo LLP announces that a shareholder derivative complaint was filed on behalf of Omega Protein Corporation (NYSE: OME) in the U.S. District Court for the Southern District of New York. The complaint is brought against certain of Omega’s officers and directors for alleged breaches of fiduciary duties and violations of the Securities Exchange Act of 1934. Omega develops, produces, and delivers products to enhance the nutritional integrity of foods, dietary supplements, and animal feeds worldwide.
Omega Accused of Misrepresenting Compliance with the Clean Water Act
According to the complaint, in 2013, Omega pleaded guilty to Clean Water Act violations and agreed to pay $7.5 million, serve three years of probation, and implement an environmental compliance program. Omega’s compliance program, however, was subsequently exposed as a sham. In December 2016, Omega pled guilty to additional criminal violations of the Clean Water Act and received a subpoena from the U.S. Securities and Exchange Commission in connection with an investigation of the company’s public disclosures regarding compliance with probation and its institution of the whistleblower program. Meanwhile, the board’s Compensation Committee awarded millions of dollars of incentive compensation to various officers due to supposed fulfillment of a “Safety and Compliance” target. In fact, the Compensation Committee allegedly subsequently altered the “Safety and Compliance” element to only be “Safety” and awarded significant incentive compensation based on the new manipulated measure, even though the officers were in breach of their fiduciary obligations.
Omega Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leo Kandinov at (800) 350-6003, or you can complete the form below and we will contact you directly.