Ides Capital Management LP mailed a letter to stockholders on May 3 blaming the practices of the current board for thecompany's alleged underperformance and asking for support for the hedge fund'sdirector nominees,according to a definitive proxy statement filed the same day.
In the letter, Ides Capital accused Boingo of having excessiveexecutive compensation and poor governance practices and claimed that thecompany's shares were underperforming. Ides Capital also said that the"reactive steps" taken by the board following Ides' activism are"too little too late."
Ides Capital said that the "value-destroyingoversight" of two current directors warrants new leadership and thereforestockholders should elect the hedge fund's nominees.The investor also has urged the company to expand its board. Boingo has continued to its board and refuteIdes Capital's allegations.