BT Brands Brings Lawsuit Against Noble Roman’s and Its Directors
03 August 2023 - 11:43PM
Business Wire
Seeks a Fair Election Process and Full
Disclosure
Updated Totals Show BT Brands Ahead by 7
Million Proxy Votes
BT Brands, Inc. (NASDAQ: BTBD) (“BT Brands or BT”) today
announced steps forward in its effort to achieve a fair vote for
Noble Roman's shareholders. On August 2, 2023, together with its
CEO Gary Copperud, BT Brands brought a lawsuit in Federal Court for
the Southern District of Indiana (the “Court”) naming Noble
Roman’s, Inc. (“NROM” or the “Company”) and members of the NROM
board of directors as Defendants. The suit alleges that the Company
and its directors violated federal law in omitting material
information from its Definitive Proxy Statement and that NROM and
its directors have violated their fiduciary duties to shareholders
in attempting to prevent BT’s nomination of Mr. Copperud to the
board. NROM’s actions are subverting the will of an overwhelming
majority of NROM shareholders. The lawsuit notes that Mr. Copperud
was recognized by Noble Roman’s as an approved board candidate and
was placed on the ballot for the July 6, 2023, annual meeting, now
scheduled for August 10, 2023. Both candidates solicited proxies; a
recent tabulation of proxy votes shows BT’s candidate, Gary
Copperud, with 10,194,885 proxy votes far exceeding the 2,851,046
proxies returned for the NROM incumbent candidate, Scott Mobley.
The current tallies represent a 3.5:1 margin of potential
victory.
In addition to the lawsuit filed yesterday, today, BT Brands and
Mr. Copperud together filed a motion requesting the Court order
NROM and its directors hold an annual meeting at which Mr.
Copperud’s nomination is duly considered, the votes in his favor
counted, and the results of the shareholders’ directive
respected.
Owning a combined stake of more than 8% of NROM shares, BT
nominated Mr. Copperud to serve as a director of NROM to bring
oversight to the NROM board, including reviews of policies
concerning executive compensation and corporate borrowing. In a
move just nine days before the original annual meeting date,
occurring when it was clear that Mr. Copperud would be elected to
the board, defeating Scott Mobley, NROM declared that, despite
enabling and recognizing Mr. Copperud’s nomination, the nomination
was now deemed to be not in compliance with Noble Roman’s bylaws
and would not be considered valid because shares owned by BT and
Mr. Copperud’s shares were held in brokerage accounts in “street
name” rather than in certificate form.
BT Brands expects to continue investigating NROM. BT is seeking
documents required to be produced under Indiana law. BT plans to
review the process of NROM’s board actions and intends to explore
all available remedies under Indiana and Federal law. Mr. Copperud
noted, “We are advocating for all shareholders invested in NROM,
and it starts with seeking fairness in the election process,
providing shareholders the opportunity to have their voices
heard.”
About BT Brands, Inc.: BT Brands, Inc. (BTBD and BTBDW)
owns and operates a fast-food restaurant chain called Burger Time,
with locations in North and South Dakota and Minnesota. In
addition, the Company owns the Pie In The Sky Coffee and Bakery in
Woods Hole, Massachusetts, the Village Bier Garten in Cocoa,
Florida, and Keegan’s Seafood Grille near Clearwater, Florida. BT
Brands is seeking acquisitions within the restaurant industry.
Forward-Looking Statements
This press release may contain statements that might be
considered forward-looking statements or predictions of future
operations. Such statements are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995
and are based on management’s belief or interpretation of
information currently available. These statements and assumptions
involve certain risks and uncertainties. Actual events may also
differ from these expectations as a result of the risks identified
from time to time in our filings with the Securities and Exchange
Commission. We assume no duty to update these statements as of any
future date.
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version on businesswire.com: https://www.businesswire.com/news/home/20230803095821/en/
KENNETH BRIMMER 612-229-8811 or Investors Contact:
InvestorCom LLC John Glenn Grau, 203-972-9300 info@investor-com.com
proxy@investor-com.com (203) 972-9300 or (877)
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