BOSTON, Oct 23 (Reuters) - Marcato Capital Management on Monday sued Deckers Outdoor Corp. to force the maker of UGG boots to hold its annual meeting and approve the hedge fund’s directors in order to avoid financial penalties of more than $100 million.
The hedge fund filed its suit in Delaware Chancery Court on Monday, taking a highly unusual step that heightens already rising tensions between the two sides. Marcato has proposed replacing the company’s entire board of 10 directors.
In the lawsuit, seen by Reuters, Marcato asks the court to force the company to lock in its annual meeting date for December 14, 2017 and force to the company to take an administrative step to disable a provision in its credit agreement. (Reporting by Svea Herbst-Bayliss)