Star Equity Fund Encourages Servotronics Shareholders to Vote WITHHOLD on the Re-Election of Ed Cosgrove and Lucion Gygax
May 24 2022 - 8:00AM
Star Equity Fund, LP (“Star Equity Fund”, “we”, “our”), a
shareholder of Servotronics, Inc. (NYSE American: SVT)
(“Servotronics” or “the Company”) that seeks to unlock shareholder
value and improve corporate governance at its portfolio companies,
urges Servotronics shareholders to vote WITHHOLD on the re-election
of incumbent board members Ed Cosgrove and Lucion Gygax at the
Company’s 2022 Annual Meeting of Shareholders, which will be held
virtually on June 10, 2022 at 9:00 a.m., ET.
Although our campaign at Servotronics led to the
Company implementing several positive changes for shareholders, we
are disappointed that Ed Cosgrove and Lucion Gygax remain on the
2022 ballot. In our view, both directors either enabled or at best
failed to see malfeasance occurring at Servotronics. Under their
watch, the Company’s previous CEO abused his authority and
perpetuated a culture of harassment at the expense of employees and
shareholders (as alleged in the lawsuit filed by a former employee
on June 7, 2021), with an internal investigation finding that he
committed willful malfeasance in violation of his employment
agreement with the Company. In addition, both directors had
overseen and continued to support the Company’s unprofitable
Consumer Products Group without having taken meaningful action to
maximize shareholder value. We believe their continued directorship
represents an impediment to further positive change and is harmful
to shareholders’ interests, and we strongly recommend shareholders
vote WITHHOLD on the re-election of both directors.
While we are pleased with the initial results of
our campaign, we also believe there is more to be done. It is our
intention to continue to monitor the Company’s progress; as we
previously disclosed, we remain ready to act again in the future on
behalf of shareholders, if further progress on improving
shareholder value and shareholder rights is not made. Today’s
recommendation is reflective of our continued commitment to
maximizing shareholder value at Servotronics.
About Star Equity Fund, LPStar
Equity Fund, LP is an investment fund managed by Star Equity
Holdings, Inc. Star Equity Fund seeks to unlock shareholder value
and improve corporate governance at its portfolio companies.
About Star Equity Holdings,
Inc.Star Equity Holdings, Inc. is a diversified
holding company with three divisions: Healthcare, Construction, and
Investments.
For more information contact: |
|
Star Equity Fund, LP |
The Equity
Group |
Jeffrey E. Eberwein |
Lena Cati |
Portfolio Manager |
Senior Vice President |
203-489-9501 |
212-836-9611 |
jeff.eberwein@starequity.com |
lcati@equityny.com |
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