Lifeway Foods again in sights of CEO’s disgruntled brother

Core Viewpoint - Lifeway Foods is facing a proxy fight initiated by shareholder Edward Smolyansky, who is seeking to reshape the company's board to address governance failures and enhance shareholder value [1][2]. Group 1: Board Restructuring Efforts - Edward Smolyansky has filed a proxy statement with the SEC to nominate himself and George Sent as director candidates ahead of the annual general meeting in December [1]. - The filing aims for a comprehensive board change to end governance failures and entrenched leadership practices that have negatively impacted shareholders [2]. - Smolyansky is advocating for the establishment of a special committee composed solely of independent directors to evaluate Lifeway's executive leadership and strategic plans [3]. Group 2: Governance Concerns - The company has been criticized for failing to disclose the addition of two new independent directors and not setting a date for the 2025 annual meeting [3]. - Smolyansky emphasized the need for an independent, transparent, and accountable board, citing governance failures and mishandling of a takeover proposal from Danone as detrimental to shareholder value [4]. - The extension of Lifeway's shareholder rights plan has been described by Smolyansky as a tactic to entrench management and block potential investors from gaining a significant stake [5][6].