Aimia sues largest shareholder, alleges it engineered ‘covert campaign’ to gain control of company

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Aimia seeks $50 million for alleged breach of contract and an order to stop Mittleman Brothers from taking steps to ‘remove or replace’ its directors

Aimia Inc. has launched a lawsuit against a New York-based hedge fund, the company’s largest shareholder, alleging it violated a contractual detente by engineering a “covert campaign” to disrupt the company’s 2019 annual general meeting.

According to the lawsuit, Mittleman, which owns 23.3 per cent of Aimia’s shares, threatened a proxy fight in 2018, but the two parties came to an agreement only months later that defused those tensions. Aimia would agree to seat two Mittleman nominees on its board and the hedge fund would, in exchange, agree to completely support the company slate of board members for the 2018 and 2019 AGMs.

“Mittleman’s clear attempt to interfere with the shareholder vote at the 2019 AGM, in direct violation of its obligations to Aimia, was just another attempt to take over the company for their own benefit without offering anything, let alone a premium, to Aimia’s shareholders,” McEwan said.

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