This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Biglari Holdings, Inc. Is Being Investigated On Behalf Of Shareholders

SAN DIEGO and SAN ANTONIO, June 17, 2013 /PRNewswire/ --  Shareholder rights law firm Robbins Arroyo LLP is investigating whether officers and directors of Biglari Holdings, Inc. (NYSE: BH) breached their fiduciary duties to shareholders. Biglari Holdings, through its subsidiaries, engages in investment management and the franchising and operating of restaurants in the United States.


Robbins Arroyo Investigates the Compensation and Business Dealings Between Biglari Holdings and the Company's Chairman and CEO

Robbins Arroyo is investigating the business dealings between Biglari Holdings and its Chairman and CEO, Sardar Biglari.  On November 5, 2010, the board of directors of Biglari Holdings approved a compensation package for Mr. Biglari, providing for a salary of $900,000 and additional payments of up to $10 million each year the company's book value increases by 6%.  Then on January 11, 2013, Biglari Holdings announced that the company had entered into a Trademark License Agreement with Mr. Biglari.  According to the agreement, the company must pay Mr. Biglari 2.5% of the company's gross revenues for five years if: (i) there is a change of control at Biglari Holdings; (ii) Mr. Biglari is terminated from the company without cause; or (iii) Mr. Biglari resigns from his employment at the company due to an involuntary termination event.  Based on the company's 2012 revenue, Mr. Biglari would receive approximately $18.35 million of the company's $38.82 million operating income if one of the triggering events occurred.  As a result of the agreement, a substantial amount of the company's value would likely be lost if any of the triggering events occur.

Robbins Arroyo's investigation concerns whether certain of Biglari Holdings officers and directors are failing to act in the company's and shareholders best interests by causing or allowing Mr. Biglari to receive inflated compensation and near total entrenchment in the company.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 +1.24 0.06%
NASDAQ 5,127.5250 +11.3820 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs