Former Attorney General of Louisiana, Charles C. Foti, Jr., Esq., a partner at the law firm of Kahn Swick & Foti, LLC (“KSF”), announces that KSF has commenced an investigation into CSX Corporation (NasdaqGS: CSX).
On March 7, 2017, the Company announced the hiring of Chief Executive Officer, Hunter Harrison, a 73-year-old railroad executive, following a campaign by activist investor Mantle Ridge. Harrison’s compensation for the four year contract included $84 million in reimbursement for pay and benefits forfeited from his prior position, payment of a tax indemnity potentially amounting to as much as $23 million, and tens of millions of dollars in salary and incentive compensation. Notably, Harrison was hired despite refusing the Company’s request for an independent doctor to review his medical records. During 2017, widespread problems reportedly plagued the Company including service disruptions, decreases in operational performance and the exit of several executives. On December 15, 2017, the Company announced that Harrison had died due to “severe complications from a recent illness.” The circumstances have raised questions in the finance sector regarding whether the Company’s executives had prior undisclosed knowledge of Harrison’s health condition or failed to exercise due diligence in the hiring process.
KSF’s investigation focuses on whether CSX’s officers and/or directors breached their fiduciary duties to CSX shareholders or otherwise violated state or federal laws.
If you have information that would assist KSF in its investigation, or have been a long-term holder of CSX shares and would like to discuss your legal rights, you may, without obligation or cost to you, call toll-free at 1-877-515-1850 or email KSF Managing Partner Lewis Kahn (firstname.lastname@example.org).