NASHVILLE (CN) – Shareholders claim Gaylord Entertainment Co., which runs the Grand Ole Opry and a hotel-resort chain, entrenched themselves at shareholders’ expense and created a poison pill to prevent Texas billionaire Robert Rowling from taking over the company.
Gaylord share price fell from $57.88 per share in June 2007 to $21.01 in July this year, “not on par with the lavish compensation its Board receives,” according to the class action in Federal Court.
Directors were paid $146,288 to $244,725 apiece in 2005, the complaint states.
Plaintiffs say Gaylord directors “entrench(ed) themselves at the company and by otherwise failing to maximize shareholders value by failing to engage in good faith value-maximizing alternatives for the company and its shareholders … have caused significant damage to the company and its shareholders.”
Plaintiffs’ lead counsel is George Barrett with Barrett, Johnston & Parsley.