Robbins Umeda LLP Announces an Investigation of Cadiz, Inc.
Robbins Umeda LLP, a shareholder rights litigation firm, has commenced an investigation into possible breaches of fiduciary duty and other violations of the law by certain officers and directors at Cadiz, Inc. (NASDAQ: CDZI). Cadiz develops and manages water and agricultural resources in California. The company retains large landholdings in the state that provide ground water resources, storage availability, agricultural fields, and contractual water rights. Cadiz also holds technologies for water conservation, reclamation, production, and conveyance. The company was founded in 1983 and is headquartered in Los Angeles, California.
Robbins Umeda LLP’s investigation focuses on whether the directors and officers of Cadiz harmed the company by breaching their fiduciary duties to shareholders. In particular, Robbins Umeda LLP is investigating the decision by the company’s board of directors to dramatically increase executive compensation by as much as 210% for fiscal year 2010, despite Cadiz’s meek financial performance during the same period. In 2010, Cadiz’s shareholders saw the company’s stock yield a meager 4% annual return. Nevertheless, Cadiz’s board voted to approve a 210% increase in compensation for Chief Executive Officer Keith Brackpool. Similarly, Cadiz’s Chief Financial Officer Timothy Shaheen, was awarded a 149% increase in total compensation in 2010.
Notably, on June 2, 2011, a majority of the company’s shareholders expressed their disapproval for this and other executive pay packages by failing to vote in favor of the company’s 2010 CEO and top executive compensation increases.
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