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Xerox investor Darwin Deason files another lawsuit

Mar 2, 2018

A major Xerox shareholder has filed another lawsuit against the company in connection with the recently announced deal that would see Fuji take control of Xerox.

This is the second suit filed by Deason in recent weeks. This latest legal action is an effort by the company’s third largest shareholder to be able to nominate a full slate of directors to the company’s board.

The lawsuit asks the court to waive a December 2017 deadline that shareholders had to meet in order to nominate directors before Xerox’s annual meeting this spring.

Deason has argued that even though he missed the deadline, the Xerox board made a series of significant decisions that are material to stockholders.

This week Xerox said that Deason does not have the right to nominate directors outside of that designated time frame.

In a joint letter to Xerox shareholders on Friday, Deason and activist investor Carl Icahn continue to question the value of the deal that would see Fuji get majority control of the company.

Xerox issued this statement on Friday in regards to the lawsuit:

"Xerox believes that Mr. Deason’s allegations are without merit and that he does not have any right to a waiver to nominate a full slate of directors to the Company’s Board outside of the nomination window.

Similar to his previously-filed litigation, Mr. Deason’s latest attempt seeks to prevent other Xerox shareholders from considering the merits of our proposed combination with Fuji Xerox and vote their shares as they see fit. The Company will defend itself through legal channels."