Shareholder suit against Huntsman filed in Jefferson County

Kelly Holleran Jun. 7, 2010, 5:38am

A Huntsman Corp. shareholder has filed a lawsuit in Jefferson County alleging the company acted improperly in the way it has handled legal matters and the way it has excessively compensated its directors.

New York resident Joseph Weiss, a shareholder in the Huntsman Corp., claims the company breached its duty to him and other shareholders when it excessively compensated and provided bonuses to its directors and officers which exceeded the value Huntsman received in consideration for the bonuses.

In addition, Huntsman breached its duty to shareholders by choosing to settle litigation the company had brought against various companies, according to the suit filed May 28 in Jefferson County District Court states.

"In this respect, the Defendant's directors failed to exercise ordinary care in evaluating the Defendant's legal position and economic bargaining position, failed to exercise ordinary care in negotiating resolution of the litigations, and ultimately, breached their fiduciary duties to the Defendant's shareholders, including the Plaintiff herein."

Huntsman failed to implement procedures for limiting the compensation paid to its officers and directors and failed to provide sufficient transparency and accountability in regards to their pay, according to the complaint.

Weiss is seeking his full damages, plus attorney's fees, costs, pre- and post-judgment interest and other relief the court deems just.

Joseph C. Blanks of Doucette will be representing him.

The case has been assigned to Judge Gary Sanderson, 60th District Court.

Jefferson County District Court case number: B186-968.

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