A lawsuit filed in a New York state court by former Xerox executive Robert Zapfel alleges he was strategically forced out of the company by activist investor Carl Icahn, who now owns 19% of the company.
Activist investor Carl Icahn, who's current estimated net worth is $24 billion
Zapfel’s complaint refers to Icahn’s behaviour as the ‘Icahn Strategy,’ according to a report by the New York-based Observor.
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| Robert Zapfel former CEO Xerox Business Services |
“Icahn invests in undervalued or mismanaged companies with the goal of securing enough board seats to eventually take a controlling position and enact changes to increase profits," it said.
“Icahn began buying Xerox shares in 2015, one year after Zapfel was hired as president of Xerox Services and CEO of Xerox Business Services, subdivisions of the company.
"As Icahn began securing board seats and publicizing his desire for a change in leadership, Zapfel was forced to resign as CEO and his business responsibilities were reduced by a third, according to court records. By beginning of 2017, Zapfel was terminated alongside a number of other Xerox executives.
“Zapfel, who is seeking $15 million, claims he is owed $12.7 million under his severance agreement with Xerox due to the connection between his termination and a change in control at the company.”
Xerox declined requests for comment, the report said. Icahn remains its largest shareholder, owning 19% of the company.
Icahn did not respond to requests for comment.
Mr Icahn is also facing shareholder displeasure over his failed 2019 attempted hostile takeover of HP.
