After disclosing a $500 million stake in Autodesk, Starboard is suing the software vendor to delay its annual shareholder meeting.
Activist investor Starboard Value sued software maker Autodesk to force the delay of its annual shareholder meeting.
Starboard had been weighing filing such a suit after weeks of engagement with the company, people familiar with the matter previously told CNBC.Activists can typically only begin a proxy fight, involving the nomination of a slate of directors to replace the existing board, if they submit their proposals within a specific window. Starboard confirmed in a letter on Monday that it has a stake in Autodesk valued at more than $500 million. Autodesk shares rose more than 7% on the disclosure.
"Manipulating corporate governance and disclosure obligations to give stockholders only one choice of directors effectively gives them no choice at all," Starboard said in its complaint, which was filed in Delaware Chancery court. "In a calculated scheme to ward off any potential challenges to their Board positions through a proxy contest, the incumbent directors failed to divulge these egregious issues regarding accounting misdirection and disclosure problems during the nomination window," Starboard said in its suit.
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