A UP corp. shareholder has sued the company’s directors,including chief executive richard davidson,contending that their handling of rail accidents and other incidents cost the company millions of dollars.
Investor david jaroslawicz suid 12 directors on behalf of UP,the biggest US Railroad,saying they breached their duty to act in the best interest of the company,according to papers filed in a Utah court last week. Omaha based UPRR would collect any damages in the suit,which cites costs of $103 million from a single derailment in 2000.
A series of New York times articles last year said that UPRR and other RR’s destroyed or tampered with evidence in crossing accidents and that the US Transportation Department failed to investigate the wrecks.
“UPRR has recived the complaint and is reviewing it with council,” UPRR spokesman John Bromley said Tuesday. “The company has no further comment at this time.”
-----Bloomberg News.
BNSFrailfan.
A typical rabble rousing disgruntaled stockholder suit. These types of suits are a dime a dozen for large corporations.
You know! You have a very good Point there. Someone out wants some Quick CASH! And they know who to go after too.
BNSFrailfan.
Trust me; this suit has little, if anything, to do with cash–it is an end run around a proxy battle.
Gabe
After my stumbling across the February TRAINS and reading the UP piece, I wouldn’t be so quick to pass judgment on the subject of this topic.
I saw the article and wondered after Allan posted what your thoughts would be on this.
Seems UP settled a 1997 lawsuit in Texas for $34 million in 2000, that looks just like this one. Looks like they will go through it all again?
Mook
Aside from my conclusion that it is a power thing–as well as a thought similar to yours–my thought is that when my current job reaches its pre-set termination date in August, I need to find a way to get in on this action. If my conclusions about the suit are right, the only winner on this will be the lawyers.
Gabe
Gabe - I like your style!
[:D]
Gabe,
Could you please explain this? And remember I don’t speak much legaleze.
Gee whiz if he bought at $100.00 PS he would be disgruntled but if he bought 6 months ago @ $50.00 PS he should be smiling all the day to the bank. I guess the suit is togets his dividends faster [:D][:D][:D]
[quote]
Originally posted by BaltACD
[
If what you say is correct then he must be one greedy SH as if he bought 6 months ago he made almost 40% already on his invested money.
[quote]
Originally posted by BNSF railfan.
I think I will tomorrow. I don’t have the article at my immediate disposal, and I don’t want to say anything more specific from memory.
Gabe
Can anyone provide a link to the actual news story?
Thanks Gabe, no hurry, just curious.
I checked on Omaha.com and couldn’t find it. But I can hold the paper up next to my screen if that will help!
I’m a failure!
[sigh]
It was in Wednesday’s Paper. Business section. Over to the left of the Page.
And Thursdays paper - Journalstar.com! I take both and thought I had the Omaha paper…sorry…