Slot machine maker International Game Technology agreed Monday to reimburse a group headed by Wall Street analyst turned investor Jason Ader up to $2.5 million for expenses incurred during the recent proxy fight earlier this year.
According to IGT, the settlement agreement calls for members of the Ader Group to observe certain standstill provisions for four years. The Ader Group and IGT agreed to a mutual release of claims in connection with, relating to or resulting from the proxy contest.
The Ader Group sought to replace members of the IGT board of directors with three of its own candidates. Only one candidate, Ader Investment Management executive Daniel Silvers, was elected.
IGT agreed to reimburse Ader Group for its documented out-of-pocket costs, fees and expenses, up to a maximum $2.5 million.
Ader Group said in the IGT release that it supports the slot machine maker’s current direction under CEO Patti Hart. IGT acknowledged the contributions to company’s growth by Ader Group member Charles Mathewson, the company’s now-retired chairman and CEO.
Union Gaming Group Managing Director Bill Lerner told investors the Ader Group’s support of IGT was a positive sign for the company.
“The proxy battle grabbed a lot of headline attention,” Lerner said. ”While we don’t think it impacted day-to-day operations at IGT, it likely weighed on executive management’s resources.”
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