A second lawsuit has been filed by shareholders of Federated Department Stores against the cataloger/retailer. On Feb. 26, the Alaska Ironworkers Pension Trust filed suit in Hennepin County District Court of Minnesota, alleging that Federated has hurt the value of its Fingerhut catalog subsidiary by announcing its intent to liquidate the business without first trying to sell it.
The suit accuses several Federated executives, of a “breach of fiduciary duty, gross mismanagement, and other unlawful acts” because the total liquidation of Fingerhut does not maximize shareholder value. According to a press release, the trust holds “thousands of shares” of Federated and manages the retirement savings of more than 1,000 workers and retirees throughout Alaska.
The suit is similar to a complaint filed on Feb. 14 by shareholder Nick Wesenberg. Both suits seek an injunction from the court to stop the liquidation process. Last week, Wayzata, MN-based Business Development Group signed a nonbinding letter of intent with Federated to purchase Fingerhut, pending further due diligence and financing arrangements.