Roll Out the Barrel: The Sec Reverses its Stance on Employment-Related Shareholder Proposals Under Rule 14a-8 -- Again

32 Pages Posted: 15 Feb 2001  

Patricia R. Uhlenbrock

Morris, Nichols, Arsht & Tunnell, Attorneys At Law

Abstract

Recent headlines have shouted the news of multi-million dollar verdicts against large corporations and huge settlement agreements. Texaco, facing adverse publicity as a result of ninety-four discrimination claims, settled those claims for $172 million. Mitsubishi settled a sexual harassment suit filed by the Equal Employment Opportunity Commission (EEOC) for $34 million. Shoney's, Inc., a family restaurant chain, faced a $530 million racial discrimination lawsuit. Shoney's settled for $134.5 million and saw its earnings drop dramatically: "the company posted a $26.6 million loss [in 1992]." Moreover, "in 1996 The Wall Street Journal reported that Shoney's had spent more than $194 million on minority organizations and salaries to repair its image after the lawsuit." In February 1997, Publix Supermarkets settled a sex discrimination claim for $81.5 million. More recently, in November 1997, Home Depot had to pay out more than $104 million to settle sex discrimination claims against its West Coast locations. Consequently, the "November 1997 settlement reduced ... Home Depot's fourth quarter earnings by 25 percent."

Suggested Citation

Uhlenbrock, Patricia R., Roll Out the Barrel: The Sec Reverses its Stance on Employment-Related Shareholder Proposals Under Rule 14a-8 -- Again. As published in Delaware Journal of Corporate Law, Volume 25, No. 2, Pp. 277-308, 2000. Available at SSRN: https://ssrn.com/abstract=260236 or http://dx.doi.org/10.2139/ssrn.260236

Patricia R. Uhlenbrock (Contact Author)

Morris, Nichols, Arsht & Tunnell, Attorneys At Law ( email )

1201 N. Market Street
P.O. Box 1347
Wilmington, DE 19899

Register to save articles to
your library

Register

Paper statistics

Downloads
93
rank
258,120
Abstract Views
1,054
PlumX