🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

Crown Castle faces lawsuit over board agreement

EditorIsmeta Mujdragic
Published 02/28/2024, 10:58 AM
© Reuters.

HOUSTON - Ted B. Miller, co-founder of Crown Castle Inc. (NYSE: NYSE:CCI) and his investment firm, Boots Capital Management, LLC, have filed a lawsuit against Crown Castle, challenging a cooperation agreement with Elliott Investment Management. The lawsuit, filed in the Delaware Court of Chancery, contends that the agreement, which appointed two new directors from Elliott to Crown Castle's Board without requiring Elliott to maintain equity in the company, is unlawful and misaligns with shareholder interests.

The complaint, lodged on Wednesday, asserts that the agreement infringes upon the board's powers, is in violation of Delaware law, and breaches Crown Castle's bylaws. It further claims that the agreement, announced on December 20, 2023, grants Elliott governance rights disproportionately and does not align with the long-term interests of Crown Castle and its shareholders.

Miller has urged Crown Castle to submit the cooperation agreement to a shareholder vote to restore transparency and credibility. He has also nominated a slate of four director candidates with extensive industry experience to reconstitute the board and implement a plan to optimize the company's assets and operations.

The case number for this legal action is 2024-0176, and the legal advisors to Miller are Heyman Enerio Gattuso & Hirzel LLP and Woolery & Co. PLLC.

This news is based on a press release statement.

InvestingPro Insights

In light of the recent lawsuit filed against Crown Castle Inc. (NYSE: CCI) by co-founder Ted B. Miller, it's important for investors to consider the company's financial health and market position. Here are some insights based on data from InvestingPro:

InvestingPro Data metrics show that Crown Castle has a substantial market capitalization of 47.07 billion USD, reflecting its significant presence in the industry. The company's P/E Ratio is 30.97, which adjusts to 28.88 when considering the last twelve months as of Q4 2023. This suggests that while the company is trading at a higher price relative to earnings, investors are valuing its future growth potential. Additionally, Crown Castle's dividend yield stands at an attractive 5.93%, as of the last recorded date, highlighting its appeal to income-focused investors.

Two key InvestingPro Tips that are particularly relevant to the article include:

1. Crown Castle has demonstrated a commitment to shareholder returns, having raised its dividend for 10 consecutive years. This could be a point of interest for investors who value consistent dividend growth.

2. Despite recent operational challenges, analysts predict that the company will remain profitable this year. This is an important consideration for shareholders concerned about the potential impact of the lawsuit on the company's financial performance.

For investors looking for more in-depth analysis, there are additional InvestingPro Tips available at https://www.investing.com/pro/CCI. With the use of the coupon code PRONEWS24, readers can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking even more valuable insights to inform their investment decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.