Cedar Fair Shareholders File Case Against Company Leadership

Jun 17, 2011 - LegalZoom News Sources
A request was filed after a disagreement occurred over the nominating process in determining the board of directors.

Businesses are controlled by the shareholders and the board of directors when it comes to making important decisions regarding the future of a company. However, disagreements between the employees and those who hold the stock options can lead to a lawsuit.

The parent company of Cedar Point amusement park disagreed with the decision to file a lawsuit by the largest shareholders of the business, organized under Q Investments, according to the Morning Journal.

A request was filed after a disagreement occurred over the nominating process in determining the board of directors. This was the eighth lawsuit filed by the shareholders in the last 12 months, the news source reported.

"When is Q Investments going to realize that there are better ways we could be spending that money to create greater value for unit holders?" Dick Kinzel, Cedar Fair’s president and chief executive officer, told the Journal.

The company has been in turmoil since it was hit hard by the recession, as the shares of its stock fell to $1.23 in 2010 from $1.92 the previous year, according to the New York Times.