On March 12, 2015, HGT Law commenced a shareholder derivative lawsuit against Nordstrom, Inc. in the United States District Court for the Western District of Washington, challenging various alleged corporate governance abuses by the controlling Nordstrom family. The lawsuit alleges that, for years, Nordstrom has maintained a vast and costly aviation department, not to serve its own corporate aviation needs, but in order to serve the personal needs of the extended Nordstrom family. Specifically, under the arrangements between the Nordstrom family and the company, Nordstrom provides the pilots to fly the family’s personal planes; uses the Company’s maintenance crew to repair and service the family planes; uses its accounting, tax reporting and other administrative staff to provide services for the family in connection with their planes; and subleases hangar space to the family to store their planes. The lawsuit alleges that these services are far outside of Nordstrom’s core business as a specialty fashion retailer and expose the company to risk. In addition, these services cost shareholders millions of dollars that Nordstrom has failed to fully recoup from the family.
To find out more about the claims in this lawsuit, you can read the Complaint here. For news coverage concerning the lawsuit, you can read the following articles by Law360, entitled Nordstrom Hid Cost Of Family’s Plane Rides, Shareholders Say and Nordstrom Suit May Clarify Disclosure Rules For Insider Deals.
HGT Law’s mission is to protect investors, including institutional or individual shareholders and other investors in the financial markets; real estate investors; and small businesses owners and entrepreneurs. HGT Law has brought securities lawsuits and shareholder derivative lawsuits on behalf of numerous institutional and individual shareholders. For more information about the Nordstrom lawsuit or any of our other cases, please contact us on (646) 453-7288 or via email at email@example.com.