NEW YORK, May 6, 2016 /PRNewswire/ -- Spear Point Capital Fund LP and Spear Point Raven LP (the "Spear Point Funds") and Imation Corp. (NYSE: IMN) announced today the resolution of a shareholder derivative lawsuit against the former members of the Board of Directors of Imation.
Ron Bienvenu, Managing Member of Spear Point Capital Partners LLC, the general partner of the Spear Point Funds, stated, "Under prior leadership director compensation was excessive. After repeated demands to rectify the issue, the Spear Point Funds commenced legal action in early 2015 to compel change. Subsequently, Imation significantly reduced director compensation, and the newly constituted Board of Directors has committed to maintaining appropriate compensation levels going forward. At this time, there is no need for the lawsuit to continue."
Mr. Bienvenu added, "In addition to board compensation reductions of 29% for independent board members, the new management and board also crafted and implemented a myriad of other positive changes affecting corporate governance, strategy, operations, asset management and compensation. We applaud the creativity of the Company in its cash management policy and believe their investment management contract is aligned with shareholder value creation."
"I'd like to thank Ron and the Spear Point team for their cooperation in ending the lawsuit. Settling the litigation against the previous members of the Board is another step in our progress. We value feedback from our shareholders and believe a healthy dialogue among stakeholders is conducive to an alignment of interests," stated Bob Fernander, Interim CEO of Imation.
About Imation Corp.
Imation (IMN) is a holding company that operates through a subsidiary engaged in global data storage and data security business. At the corporate level, there is an ongoing strategic review as Imation expects to seek and explore new opportunities that will allow it to pursue a diverse range of business opportunities and deploy its excess cash. For more information, visit www.imation.com.
About Spear Point Management LLC
Spear Point Capital Management LLC ("Spear Point") is an activist investor which seeks to achieve a high level of total return by investing in undervalued, publicly traded companies and applying activist strategies to unlock long-term shareholder value. For more information, visit www.spearpointproject.wordpress.com
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SOURCE Imation Corp.