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Lovenheim v. Iroquois Brands, Ltd
Facts
Plaintiff wanted to insert a proposal to determine whether a supplier of pate de fois gras force-fed the geese n order to enlarge the livers. The pate represented less than .05 percent of Defendants sales, and the product operated at a loss. Therefore Defendants wanted to omit the proposal. Defendants believed that only a proposal related to economic purposes are required to be accepted per Rule 14a-8(c)(5), and that the 5% threshold was not exceeded. Plaintiff argued that material social issues that were relevant to the business would not fit under the Rule’s exception.
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