Robbins Arroyo LLP Is Investigating the Officers and Directors of Build-A-Bear Workshop, Inc. (BBW) on Behalf of Shareholders
May 6, 2016 (San Diego, CA & St. Louis, MO) – Shareholder rights law firm Robbins Arroyo LLP is investigating whether certain officers and directors of Build-A-Bear Workshop, Inc. (NYSE: BBW) violated their legal obligations to the company and its shareholders in connection with alleged breaches of their fiduciary duties regarding Build-A-Bear’s corporate governance practices. Build-A-Bear operates as a specialty retailer of plush animals and related products.
Build-A-Bear Engages in Questionable Corporate Governance Practices
On May 3, 2016, Build-A-Bear reported its first quarter results, announcing a strategic review of the company, including the option of selling. Notably, Build-A-Bear is in dispute with activist investor firm Cannell Capital LLC (“Cannell”), which has accused the company of engaging in financially unsophisticated and shareholder unfriendly actions. For example, Cannell argued that Build-A-Bear’s decision to allow its Chief Executive Officer (“CEO”) to approve or reject candidates for membership on the board of directors will interfere with its independence and ability to oversee the company’s management and executive compensation. Cannell also took issue with the board of directors’ approval of increased executive compensation, noting that Build-A-Bear rewarded its already well-paid management with unnecessarily rich employment and service agreements, including a 20% increase in pay for CEO Sharon John.
Build-A-Bear Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.
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