Kenneth Young resigned from the board of
Young's resignation was not due to any disagreement with thecompany.
B. Riley appointed Todd Sims to serve as a board member untilthe company's 2017 annual stockholders meeting. Sims is senior vice presidentof digital strategy at Anschutz Entertainment Group Inc.
In addition, B. Riley disclosed the dismissal of certaincomplaints against the company related to its acquisition of
Three stockholders of United Online had filed complaints inthe Court of Chancery of Delaware against United Online, its board members andB. Riley alleging breaches of fiduciary duty. The complaints had alleged thatthe merger consideration B. Riley offered was unfair and inadequate.
The court dismissed the stockholder action with prejudice asto plaintiffs Morris Akerman, Daniel Pannucci and Jeweltex Manufacturing Inc.Retirement Plan, and without prejudice as to all other plaintiffs and anyabsent members of the putative class. The court retained jurisdiction solelyfor the purpose of determining the plaintiffs' anticipated application for an awardof attorneys' fees and reimbursement of expenses.
The plaintiffs' counsel in the stockholder actions intendsto petition the court for fees and reimbursement of expenses in connection withcertain standstill waivers and certain supplemental disclosures. Afternegotiations, B. Riley has agreed to pay fees and expenses of $275,000 within10 days of the entry of an order closing the case. This fee has not beenapproved or ruled upon by the court.