Danone to pause litigation as part of truce with Lifeway Foods

Core Points - Danone will pause litigation against Lifeway Foods and vote in favor of the company's board as part of a new agreement, following its decision to abandon the acquisition of Lifeway [1][6] Group 1: Legal and Corporate Governance - Danone previously sued Lifeway over the issuance of new shares to CEO Julie Smolyansky, claiming it violated a long-standing agreement requiring Danone's consent [2] - Lifeway countersued, asserting that Danone's claims were invalid, while Danone holds a 22.7% stake in Lifeway [2] - The new agreement includes a truce where both companies will pause litigation against each other [2] Group 2: Board Composition Changes - Lifeway will appoint four new independent directors not affiliated with Danone or the Smolyansky family, subject to Danone's approval [3] - Two of Lifeway's longest-serving board members will resign as part of the agreement [4] - Lifeway plans to separate the roles of chairman and CEO, with Julie Smolyansky remaining as CEO and an independent director to eventually serve as chairman [4] Group 3: Future Outlook and Strategic Focus - Danone has agreed to vote in favor of Lifeway's board at the 2025 and 2026 annual meetings, amidst a proposal from Lucy and Edward Smolyansky to oust the entire board [4] - Julie Smolyansky expressed that the agreement allows for clarity and stability, focusing on delivering probiotic-rich foods and creating shareholder value [5] - Danone is still reviewing its investment in Lifeway, considering the potential sale of its shares [5]