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    Parlux getting sued by one of its shareholders

    Reported by Bloomberg

    A shareholder of Parlux Fragrances Inc. sued the company’s board of directors, claiming they are selling the maker of Paris Hilton’s perfume too cheaply.

    Jose Dias sued Parlux’s chairman, the company’s directors and the proposed buyer, Perfumania Holdings Inc., which operates a chain of perfume shops, in a case made public today in Delaware Chancery Court in Wilmington. Perfumania, controlled by the family of Chairman Glenn Nussdorf, is one of Parlux’s biggest customers, according to the complaint.

    “Perfumania was able to use the company’s dependence on them to negotiate a deal that allowed it to pick up the company at an unfair price and under unfair terms,” Dias claimed in the complaint.

    Parlux said the proposed cash and stock deal was worth $170 million when it was announced in December. Since then, Perfumania’s shares have plunged, reducing what Parlux’s investors will receive, according to the complaint.

    Read of the rest of the article here.

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    Comments

    Comment from Dawn
    Time: February 1, 2012, 9:20 am

    LOL a shareholder?
    Decisions in any company are made by the person(s) who hold controlling interest.

    Welcome to the realities of corporate life.

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