Levi & Korsinsky announces it has commenced an investigation of Oil-Dri Corp. of America (NYSE: ODC) concerning possible breaches of fiduciary duty by the board of directors of the company. The investigation concerns the Company’s granting of Class B Stock to certain officers and directors. In particular, on September 9, 2015, the Company granted to Daniel S. Jaffee, the President and CEO, compensation in the form of 125,000 restricted shares of Class B Stock instead of common stock. Class B Stock include 10 votes per share, so the 125,00 Class B shares give the grantee 1,250,000 votes instead of 125,000 votes. Moreover, this grant increased Mr. Jaffee’s aggregate voting power by 4%. By paying compensation in Class B shares, Oil-Dri Corp. of America is improperly shifting company control to its insiders and away from the public shareholders.
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