Electromed settles a lawsuit filed against former CEO Robert Hansen and ex-marketing director Eileen Manning, who sought to add hand-picked board members after Hansen's departure.
Electromed said it settled legal beefs with its co-founder and former CEO, Robert Hansen, and ex-marketing director Eileen Manning over the composition of the medical device company's board.
Electromed sued Manning and Hansen in December 2012, alleging that Manning broke proxy solicitation rules when she sought to have hand-picked candidates elected to Electromed's board. The company alleged that Hansen broke a separation agreement "in connection with his actions relating to Ms. Manning's proposal," according to a regulatory filing.
Both Manning and Hansen filed counter-claims, with Manning asserting that Electromed violated her shareholder's rights "by failing to count and certify the results of the election" and Hansen alleging that the New Prague, Minn.-based company violated his separation deal "in connection with his actions relating to Ms. Manning's proposal," according to the filing.