February 23, 2015 (Shareholders Foundation) - An investor in shares of Imation Corp. (NYSE:IMN) filed a lawsuit against certain directors of Imation Corp over alleged breaches of fiduciary duties in connection with the compensation of certain executives.
The plaintiff claims that Imation’s board of directors grossly over-compensated its members in relation to companies of comparable market capitalization and size and failed to take into account of any relevant metrics, such as revenue and profit in setting its compensation. The plaintiff says that despite the company’s persistently and steadily declining revenue and continued losses over the past few years, Imation paid its non-employee directors 131% more than its peers.

The plaintiff seeks to recoup the allegedly excessive compensation from certain directors and impose certain corporate governance reforms that will both restrict the board of director’s ability to award itself excessive compensation and tie elements of compensation to the success and long-term interests of Imation Corporation.

Imation Corp. reported that its annual Total Revenue declined from over $1 billion in 2012 to $860.80 million in 2013. Shares of Imation Corp. (NYSE:IMN) declined from $6.40 per share in February 2014 to as low as $2.82 per share in September 2014.