Lawsuit Over Crown Castle Governance Rights

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Crown Castle co-founder Ted Miller, along with his investment vehicle, has filed a lawsuit challenging an agreement between the company’s board and Elliott Investment Management. The lawsuit contends that the agreement grants Elliott certain governance rights without the need for an equity stake in the company, leading to a misalignment of short-term profit incentives with the long-term interests of Crown Castle and its shareholders.

Legal Action

The lawsuit was filed in the Court of Chancery of the State of Delaware, asserting that the terms of the agreement are invalid and unenforceable under Delaware law. Despite this legal challenge, a representative for Elliott declined to comment while a Crown Castle spokesperson dismissed Miller’s claims as lacking merit.

Recent Developments

Last year, Elliott called for changes at Crown Castle, including the removal of the CEO and a review of its fiber strategy. In response, Crown Castle implemented various changes, such as the departure of then-CEO Jay Brown and the addition of new board members. Notably, Jason Genrich from Elliott joined the board as part of the agreement between the two parties.

Proxy Fight

Miller initiated a proxy fight by seeking four board seats, but Crown Castle rejected his nominations, citing careful consideration. In a letter from Crown Castle’s legal representation, claims by Miller and his investment vehicle were refuted, emphasizing inaccuracies and distortions regarding the nature of the relationship between Crown Castle and Elliott.

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