Late yesterday, the company, engaged in liquid natural gas LNG-related businesses, canceled its annual meeting scheduled for next week, because of a lawsuit that accuses the company of improperly awarding stock to employees that today would be valued at more than $1 billion, according to the Wall Street Journal.
The company said the meeting will be rescheduled for September.
The company also faces opposition over a new plan to issue an additional 30 million shares to employees, after making CEO Charif Souki one of the highest paid CEOs in the U.S. last year. That compensation plan was to be voted on at the annual meeting, the Journal noted.
TheStreet Ratings team rates CHENIERE ENERGY INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate CHENIERE ENERGY INC (LNG) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and increase in net income. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and generally higher debt management risk."