San Diego, CA -- (SBWIRE) -- 07/24/2012 -- An investor in shares of Sealy Corporation (NYSE:ZZ) filed a lawsuit against directors of Sealy Corporation in connection with the board of director’s relationship with Kohlberg Kravis Roberts & Co. L.P.
Investors who purchased shares of Sealy Corporation (NYSE:ZZ) and currently hold those NYSE:ZZ shares, have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
According to the complaint the plaintiff alleges that certain directors of Sealy Corporation (NYSE:ZZ) breached their fiduciary duties owed to NYSE:ZZ stockholders by acting not in their best interest but rather acting in the best interest of private equity firm Kohlberg Kravis Roberts & Co. L.P.
In March 2012 a letter was sent to the board of directors of Sealy Corporation by H Partners Management, LLC, which owns approximately 14.5% of Sealy Corporation’s outstanding shares, expressing concern that the Sealy Corporation Board might have been advancing the interests of Kohlberg Kravis Roberts & Co. L.P. over the interests of all Sealy Corp. shareholders.
According to an article published also in March 2012, H Partners Managements' letter complains that Kohlberg Kravis Roberts & Co. L.P. receives "disproportionate representation of at least 78% on Sealy's Board, including three direct representatives on the board," while the 53.8% non-KKR owners of the Company have no board representation, and Sealy Corporation is saddled with "high debt, bad management" and "high fee payouts."
Shares of Sealy Corporation (NYSE:ZZ) dropped from over $17.50 per share in February 2007 to $1.45 in February 2011.
On July 20, 2012, NYSE:ZZ shares closed at $1.63 per share.
Those who purchased shares of Sealy Corporation (NYSE:ZZ) and currently hold those Sealy Corporation (NYSE:ZZ) shares, have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego