Fradkin v. Ernst

MEMORANDUM OPINION and JUDGMENT ENTRY

DOWD, District Judge.

This case involves a challenge to the implementation of the 1983 stock option plan (Plan) for the senior executives of Mohawk Rubber Company (Mohawk). The Plan was approved by Mohawk’s Directors on January 4, 1983, and presented to and allegedly approved by the shareholders at Mohawk’s Annual Meeting. Plaintiff contends that a proxy statement issued to shareholders describing the Plan prior to the Annual Meeting violated the federal securities laws. Plaintiff also argues that the Plan constitutes corporate waste and that the Plan was…