A press release from Zamansky LLC; December 18, 2017:
NEW YORK–(BUSINESS WIRE)–Zamansky LLC announces that it is investigating CSX Corp. (NASDAQ: CSX), the railway conglomerate based in Jacksonville, Florida, for potential breaches of fiduciary duties to shareholders. On December 15, 2017, CSX’s controversial CEO, Hunter Harrison, died after only several months on the job. Harrison’s hiring by CSX’s Board was controversial because he was 73 years old and in ill health, and because his hiring resulted from a campaign by activist shareholder Paul Hilal.
On December 17, 2017, days after Harrison’s death, the Wall Street Journal reported in an article that CSX faces tough questions on the death of its CEO. According to its article, CSX Board members allegedly knew of Harrison’s ill health before his hiring, yet proceeded with his large compensation deal anyway. The article raised questions about the alleged lack of background diligence performed by Board members about Harrison’s hiring.
CSX’s stock price fell substantially on the recent news of Harrison’s medical leave last week, and then again on his death. According to Jake Zamansky, investment fraud attorney, CSX’s Board members owe the company and its shareholders fiduciary duties, which include duties of care and loyalty. We are investigating whether there was any potential breach of fiduciary duty to the company in the hiring of Harrison or in the compensation awarded him, Zamansky says.
What CSX Shareholders Can Do
If you are a shareholder of CSX who purchased before Harrison’s hiring and who still holds the stock, please contact us to review or discuss your legal rights. You may, without obligation or cost to you, email [email protected] or call the law firm at (212) 742-1414.
About Zamansky LLC
Zamansky LLC is a leading investment fraud law firm with a focus on securities, hedge fund, ERISA and shareholder derivative and class action litigation. We are investment fraud attorneys who represent both individual and institutional investors. Our practice is nationally recognized for our ability to aggressively prosecute cases and recover investment losses.