Parkland Corp. faces a lawsuit from its largest shareholder, Simpson Oil, over allegations of undue influence and board insulation.
Parkland Corp., a Canadian fuel retailer, faces a lawsuit from its largest shareholder, Simpson Oil. The Cayman Islands-based company, which owns around 20% of Parkland's shares, accuses Parkland of attempting to insulate its board of directors and CEO from accountability. Simpson Oil has filed an application with the Ontario Superior Court of Justice seeking a declaration that the voting restrictions from a 2019 agreement between the two entities are no longer valid. Simpson Oil alleges that the company's performance has suffered due to significant staff turnover and the agreement has resulted in undue influence and control. Parkland maintains that it has worked in "good faith" to resolve the disagreement outside of the courts and remains open to a constructive solution with Simpson Oil.