Figure Markets and Ionic Digital shareholder Veton Vejseli have requested access to company records under Section 220 of Delaware General Corporation Law. The request aims to investigate potential misconduct by the Board of Directors and assess their fiduciary duties.
Request for Document Access
Figure Markets and Veton Vejseli believe access to these records is crucial for protecting shareholder interests. The request arises from concerns about potential self-dealing behavior by board members and actions that may have disadvantaged shareholders.
Alleged Misconduct
Specific areas of investigation include agreements with Hut 8 Corp., excessive compensation packages for the Board, restrictions on trading Ionic stock, and delays in registering the company's Class A Common Stock. Based on interactions with the Board and public filings, Figure Markets and Veton Vejseli believe the Board may be prioritizing its own interests over those of shareholders.
Justification for Investigation
Figure Markets and Veton Vejseli point to the Board's actions such as rejecting Figure Markets’ proposals during Celsius bankruptcy proceedings, creating beneficial deals with Hut 8, self-appointing key decision-makers in the Chapter 11 process, generous compensation packages, and delays in listing Ionic's stock as possible evidence of misconduct.
Figure Markets and Veton Vejseli believe the Board’s actions may constitute gross negligence and warrant removal. They stress the importance of access to the documents to restore shareholder democracy and urge the Board to collaborate constructively to address these concerns.
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