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Sealy Corporation (NYSE:ZZ) Investor Files Lawsuit Against Directors Over Alleged Breaches Of Fiduciary Duties

  • If you purchased shares of Sealy Corporation (NYSE:ZZ) and currently hold those NYSE:ZZ shares, you have certain options and you should contact the Shareholders Foundation, Inc.

  • To have your information reviewed for options and to receive notifications about this case, please send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.

Lawsuit Overview

Company
Sealy Corporation
Security
NYSE: ZZ

Case Name
Sealy Shareholder Derivative Lawsuit 07/20/2012
Type of Lawsuit
Stockholder Derivative Action
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Summary

July 23, 2012 (Shareholders Foundation) -- An investor in shares of Sealy Corporation (NYSE:ZZ) filed a lawsuit against directors of Sealy Corporation in connection with the board of director’s relationship with Kohlberg Kravis Roberts & Co. L.P.
According to the complaint the plaintiff alleges that certain directors of Sealy Corporation (NYSE:ZZ) breached their fiduciary duties owed to NYSE:ZZ stockholders by acting not in their best interest but rather acting in the best interest of private equity firm Kohlberg Kravis Roberts & Co. L.P.

In March 2012 a letter was sent to the board of directors of Sealy Corporation by H Partners Management, LLC, which owns approximately 14.5% of Sealy Corporation’s outstanding shares, expressing concern that the Sealy Corporation Board might have been advancing the interests of Kohlberg Kravis Roberts & Co. L.P. over the interests of all Sealy Corp. shareholders.

According to an article published also in March 2012, H Partners Managements' letter complains that Kohlberg Kravis Roberts & Co. L.P. receives disproportionate representation of at least 78% on Sealy's Board, including three direct representatives on the board, while the 53.8% non-KKR owners of the Company have no board representation, and Sealy Corporation is saddled with high debt, bad management and high fee payouts.

Shares of Sealy Corporation (NYSE:ZZ) dropped from over $17.50 per share in February 2007 to $1.45 in February 2011.

On July 20, 2012, NYSE:ZZ shares closed at $1.63 per share.