FILED: NEW YORK COUNTY CLERK 04/11/2019 03:55 PM INDEX NO. 652147/2019 NYSCEF DOC. NO. 1 RECEIVED NYSCEF: 04/11/2019 SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF NEW YORK –––––––––––––––––––––––––––––––––––––––– X CARMEN RIBBE, derivatively on behalf of ) XEROX CORPORATION, ) ) Plaintiff, ) ) v. ) ) JEFFREY JACOBSON, GREGORY Q. ) BROWN, JOSEPH J. ECHEVARRIA, ) WILLIAM CURT HUNTER, ROBERT J. ) Index No. _______________ KEEGAN, CHERYL GORDON KRONGARD, ) CHARLES PRINCE, ANN N. REESE, ) SUMMONS STEPHEN H. RUSCKOWSKI, SARA ) MARTINEZ TUCKER, KEITH COZZA, ) Date Index No. Purchased: GIOVANNI G. VISENTIN, JONATHAN ) April 11, 2019 CHRISTODORO, NICHOLAS GRAZIANO, and ) A. SCOTT LETIER, ) ) Defendants, ) ) and ) ) XEROX CORPORATION, ) ) Nominal Defendant. ) –––––––––––––––––––––––––––––––––––––––– X TO THE ABOVE-NAMED DEFENDANT(S) (See attached List of Defendants with Addresses) You are hereby summoned to answer the complaint in this action and to serve a copy of your answer, or, if the complaint is not served with this summons, to serve a notice of appearance, on the Plaintiff's attorney within 20 days after the service of this summons, exclusive of the day of service (or within 30 days after the service is complete if this summons is not personally delivered to you within the State of New York); and in case of your failure to appear or answer, judgment will be taken against you by default for the relief demanded in the complaint. 1 of 129 FILED: NEW YORK COUNTY CLERK 04/11/2019 03:55 PM INDEX NO. 652147/2019 NYSCEF DOC. NO. 1 RECEIVED NYSCEF: 04/11/2019 The basis of venue designated is CPLR § 503(a). Plaintiff designates New York county as the place of trial. Dated: April 11, 2019 LEVI & KORSINSKY, LLP By: /s/ Christopher J. Kupka Eduard Korsinsky Christopher J. Kupka Samir Shukurov 55 Broadway, 10th Floor New York, New York 10006 T: (212) 363-7500 WOLF HALDENSTEIN ADLER FREEMAN & HERZ LLP Herman Cahn Benjamin Y. Kaufman Patrick Donovan Veronica Bosco 270 Madison Avenue New York, New York 10016 T: (212) 545-4600 Attorneys for Plaintiff Carmen Ribbe 2 of 129 FILED: NEW YORK COUNTY CLERK 04/11/2019 03:55 PM INDEX NO. 652147/2019 NYSCEF DOC. NO. 1 RECEIVED NYSCEF: 04/11/2019 DEFENDANT SERVICE LIST XEROX CORPORATION STEPHEN H. RUSCKOWSKI 201 Merritt 7 2 Coventry Lane P.O. Box 4505 Andover, MA 01810-2235 Norwalk, CT 06858-4505 SARA MARTINEZ TUCKER JEFF JACOBSON c/o Xerox Corp. c/o Xerox Corp. 201 Merritt 7 201 Merritt 7 P.O. Box 4505 P.O. Box 4505 Norwalk, CT 06858-4505 Norwalk, CT 06858-4505 KEITH COZZA GREGORY Q. BROWN c/o Xerox Corp. c/o Xerox Corp. 201 Merritt 7 201 Merritt 7 P.O. Box 4505 P.O. Box 4505 Norwalk, CT 06858-4505 Norwalk, CT 06858-4505 GIOVANNI G. VISENTIN JOSEPH J. ECHEVARRIA c/o Xerox Corp. c/o Xerox Corp. 201 Merritt 7 201 Merritt 7 P.O. Box 4505 P.O. Box 4505 Norwalk, CT 06858-4505 Norwalk, CT 06858-4505 JONATHAN CHRISTODORO WILLIAM CURT HUNTER c/o Xerox Corp. 9888 Manor View Drive NW 201 Merritt 7 Concord, NC 28027-5414 P.O. Box 4505 Norwalk, CT 06858-4505 ROBERT J. KEEGAN 471 Royal Sunset Drive NICHOLAS GRAZIANO Durham, NC 27713 c/o Xerox Corp. 201 Merritt 7 CHERYL GORDON KRONGARD P.O. Box 4505 c/o Xerox Corp. Norwalk, CT 06858-4505 201 Merritt 7 P.O. Box 4505 A. SCOTT LETIER Norwalk, CT 06858-4505 c/o Xerox Corp. 201 Merritt 7 CHARLES PRINCE P.O. Box 4505 11537 Turtle Beach Road Norwalk, CT 06858-4505 North Palm Beach, FL 33408-3344 ANN N. REESE 168 Kirby Lane Rye, NY 10580 3 of 129 FILED: NEW YORK COUNTY CLERK 04/11/2019 03:55 PM INDEX NO. 652147/2019 NYSCEF DOC. NO. 1 RECEIVED NYSCEF: 04/11/2019 SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF NEW YORK –––––––––––––––––––––––––––––––––––––––– X CARMEN RIBBE, derivatively on behalf of ) XEROX CORPORATION, ) ) Plaintiff, ) ) v. ) ) JEFFREY JACOBSON, GREGORY Q. ) BROWN, JOSEPH J. ECHEVARRIA, ) ) WILLIAM CURT HUNTER, ROBERT J. Index No. _______________ KEEGAN, CHERYL GORDON KRONGARD, ) ) CHARLES PRINCE, ANN N. REESE, DERIVATIVE AND CLASS ) STEPHEN H. RUSCKOWSKI, SARA ACTION STOCKHOLDER ) MARTINEZ TUCKER, KEITH COZZA, COMPLAINT GIOVANNI G. VISENTIN, JONATHAN ) CHRISTODORO, NICHOLAS GRAZIANO, and ) A. SCOTT LETIER, ) ) Defendants, ) ) and ) ) XEROX CORPORATION, ) ) Nominal Defendant. ) –––––––––––––––––––––––––––––––––––––––– X Dated: April 11, 2019 LEVI & KORSINSKY, LLP WOLF HALDENSTEIN ADLER FREEMAN & Eduard Korsinsky HERZ LLP Christopher J. Kupka Herman Cahn Samir Shukurov Benjamin Y. Kaufman 55 Broadway, 10th Floor Patrick Donovan New York, New York 10006 Veronica Bosco (t) (212) 363-7500 270 Madison Avenue New York, New York 10016 (t) (212) 545-4600 Attorneys for Plaintiff Carmen Ribbe 4 of 129 FILED: NEW YORK COUNTY CLERK 04/11/2019 03:55 PM INDEX NO. 652147/2019 NYSCEF DOC. NO. 1 RECEIVED NYSCEF: 04/11/2019 TABLE OF CONTENTS PRELIMINARY STATEMENT .................................................................................................... 1 STATEMENT OF JURISDICTION AND VENUE ...................................................................... 9 PARTIES ...................................................................................................................................... 10 Plaintiff ................................................................................................................................... 10 Nominal Defendant ................................................................................................................. 10 Defendants .............................................................................................................................. 11 Continuing Directors ............................................................................................................... 11 Resigning Directors ................................................................................................................ 11 New Directors ......................................................................................................................... 13 Relevant Non-Parties .............................................................................................................. 14 FURTHER SUBSTANTIVE ALLEGATIONS ........................................................................... 15 I. In 2001, Xerox Entered into Certain “Crown Jewels” Agreements with Fuji, Which the Board Kept Secret Until Deason Forced Their Disclosure in 2018. ........................ 15 A. The Joint Venture Agreements ................................................................................ 16 II. Unaware of Xerox’s Crown Jewels Agreements with Fuji, Stockholder Activist Icahn Begins Acquiring a Stake in Xerox to Attempt to Influence Xerox’s Strategic Decision. ........................................................................................................................ 20 A. Icahn’s Long History of Stockholder Activism Has Shown That He Can Cause Harm to Companies in His Attempts to Maximize His Own Profits from His Investments in Such Companies. ............................................................................. 20 B. In November 2015, Icahn Begins Working His Activist Strategies on the Xerox Board and Acquires Nearly a 10% Position in the Company. ................................. 23 III. Icahn Threatens Jacobson, Who Sets to Work Arranging a Transaction That Will Allow Him to Keep His Job. .......................................................................................... 29 IV. The Old Board Allows Jacobson and Fuji to Set the Terms of the Fuji Transaction. .................................................................................................................... 34 A. Jacobson Throws a “Hail Mary” by Proposing an Equity Swap That Would Cede Control of Xerox to Fuji. ................................................................................ 36 B. The Board Tells Jacobson That He Is Being Replaced, and Jacobson Disobeys the Board’s Directive by Going All-in on the Fuji Transaction. ............................. 44 5 of 129 FILED: NEW YORK COUNTY CLERK 04/11/2019 03:55 PM INDEX NO. 652147/2019 NYSCEF DOC. NO. 1 RECEIVED NYSCEF: 04/11/2019 C. Christodoro Resigns, Icahn Launches a Proxy Contest, and Jacobson, Centerview, and Fuji Redouble Their Efforts to Obtain Board Approval of the Fuji Transaction. ...................................................................................................... 50 V. Facing Increasing Public Scrutiny, the Old Board Plays its End-Game to “Sell” the Fuji Transaction to Xerox Stockholders. ....................................................................... 57 VI. Defendants Announce the Fuji Transaction. .................................................................. 71 VII. Deason and Icahn Commence Litigation against Xerox................................................ 74 VIII. The Court Enjoins the Fuji Transaction and Enforcement of the Director By-Law. ..... 79 IX. The Board Enters into, and Immediately Abandons, the Initial Settlement Agreement. ..................................................................................................................... 82 X. Still Aware that the Court Had Found That They Had Likely Breached Their Fiduciary Duties, the Board Members Enter into the New Settlement Agreement. ...... 89 XI. Plaintiff Commences His Initial Derivative Action, Fuji Appeals and Sues, and the Current Board and Class Plaintiffs Seek Approval of the Class Settlement Agreement. ....................................................................................................................
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