A McAfee investor lawsuit against the company alleges the company’s board of directors is violating its fiduciary duty to shareholders by failing to protect their interests.
Key points:The McAfee lawsuit is filed against a board of four members of the company, including chairman Jeffry M. Schulz, who is currently serving as the company CEOThe lawsuit alleges the board has failed to protect its interestsThe company said it had already decided not to renew Schulz’s contractThe Mcafees claims are seeking unspecified damages in addition to an order to reinstate Schulz and to pay a $100 million penalty.
Schulz, a former CEO of the online health firm, has been under investigation by authorities in the United States over alleged money laundering and alleged theft of trade secrets.
He was fired by McAfee in 2014 after he was caught up in a $50 million bribery scandal involving a Swiss bank.
McAfee has denied wrongdoing and said the investigation is politically motivated.
The company has previously said it would not discuss the lawsuit with the media.
However, a McAfee spokesperson said it was seeking to “unmask” the details of the allegations and “reveal the facts of the case to the world”.
The McAFees lawsuit is part of a broader civil rights lawsuit that alleges that the board of McAfee is violating the California state securities laws by not providing information on a variety of matters including the company finances and the nature of its assets.
The suit is filed in San Diego Superior Court, where McAfee’s former chairman, Jeffrey Schulz has been in custody since a July 24 court hearing.
A McAfee spokeswoman said in a statement that the company was “actively investigating” the lawsuit, but that it had “not been served with any document that would allow us to review the document in question.”
The statement did not provide further details about what the document was.
The lawsuit also seeks unspecified damages, but did not say what they might be.
The court has not yet ruled on whether to dismiss the case, but McAfee has said that it is ready to do so.
In the filing, the Mcafers allege that the alleged breach of fiduciaries duty has caused “significant and irreparable injury” to the company.
The filing said that the allegations are related to the 2015 sale of its intellectual property to the pharmaceutical giant Novartis, which was to have been completed in February 2021.
The McFortunes also claim that McAfee, under the leadership of Schulz since 2014, “engaged in a pattern of corporate and financial misconduct” that included “negligent management, mismanagement, financial misconduct, violations of the California securities laws and violations of federal and state laws”.
The lawsuit, filed on July 25, claims that the court’s decision to dismiss it was based on a misunderstanding of its allegations.
The case is being handled by former San Diego District Attorney Ken Kratz.