MONTREAL — Aimia Inc. has filed a lawsuit against its largest shareholder that accuses the dissident investor of violating a contracted truce, the latest move in a battle over control of the company’s board of directors.
The loyalty rewards company says in the lawsuit that it reached an agreement with Mittleman Brothers LLC last year that suspended the New York investment firm’s threats to overthrow the board.
Aimia alleges that Mittleman violated the agreement both in a continued effort to advocate for radical changes at Aimia, and more recently in trying to disrupt the company’s annual meeting in late June, before the contract expired on July 1.
The lawsuit comes only days after Mittleman, which owns 23.3 per cent of Aimia shares, publicly objected to how Aimia appointed two board members just weeks after the annual meeting, where new board members are routinely elected.
The 2018 agreement included Aimia giving Mittleman two board seats in exchange for the firm’s support of Aimia’s board slate in 2018 and 2019, among other terms.
The Montreal-based company is asking for $50 million in damages in the Ontario Superior Court of Justice.
Companies in this story: (TSX:AIM)
The Canadian Press