Whole Foods Shareholder Files Suit to Block Amazon Deal
A Whole Foods Market shareholder is attempting to block Amazon.com's proposed acquisition of the Austin, Texas-based natural grocer, filing a lawsuit that claims the deal “undervalues Whole Foods and is being made without sufficient transparency,” the Austin American-Statesman has reported.
Robert Riegel filed the suit in the U.S. District Court for the Western District of Texas, claiming the grocer's July 7 proxy statement was “misleading,” “failed to disclose information important to stakeholders” and “failed to disclose how the company calculated certain valuations,” the newspaper said.
“The proxy statement states that, in connection with negotiating the merger agreement, Amazon had preliminary discussions with certain Whole Foods executive officers regarding Amazon's desire to retain such officers following the closing,” the suit noted. “However, the proxy fails to disclose the timing and nature of all communications regarding the future employment and/or benefits relating to Whole Foods management.”
The lawsuit requests that the court block the acquisition by the Seattle-based ecommerce company and seeks class-action status, the newspaper reported.