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Oct 24, 2018

DavidsTea shareholders withdraw lawsuit against co-founder

DavidsTea

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MONTREAL -- DavidsTea Inc. (DTEA.O) says that a lawsuit initiated last summer by shareholders against the beverage retailer's co-founder and interim CEO has been discontinued.

The Montreal-based company says that three Highland Limited partnerships have ended their suit in Quebec Superior Court.

The lawsuit filed in July sought to have Herschel Segal removed as executive chairman and the election of a new board of directors.

Segal and his Rainy Day Investments Ltd. own about 46.4 per cent of the outstanding shares.

In a news release Wednesday, Segal says he was pleased about the withdrawal of a lawsuit he had labelled frivolous.

The tensions between the shareholders surfaced before a slate of Rainy Day nominees was elected to the board and that resulted in the resignation of CEO Joel Silver.