On the eve of the coronation planned by Dick DeVos (R-Amway), the Grand Rapids Press reports that a new legal action has been initiated against Alticor Inc. President Doug DeVos (little brother of Dick), Chairman Steve Van Andel, and the Amway guy himself, former President Dick DeVos.
Four former investors in the Asian subsidiary of Amway Corporation claim they were cheated out of $1 billion. According to the Press:
Chicago attorney Clinton Krislov has filed an appeal with Michigan Supreme Court on behalf of former Amway Asia Pacific shareholders Nancee and Donald Turnwall, of Irons, local attorney Robert Wardrop II and Texas resident Mark Metro.
. . .
A federal court dismissed the breach of fiduciary duty claim. But Krislov maintains while Amway's offer was a 53 percent premium over the market value of the shares at the time, they were worth closer to $40 and would be valued much higher today.
"They literally took a billion dollars that rightfully belonged to their shareholders," Krislov said. "You can buy the ticket, but if there's a train to be ridden, you're not on it."
Earlier this year, the Michigan Court of Appeals said the claims should have been brought against DeVos and Amway in Bermuda:
Most recently, a three-judge panel of the Michigan Court of Appeals decided in favor of Amway on July 22. Judges Richard Bandstra, Alton Davis and David Sawyer ruled the investors ought to have sought appraisal with the Supreme Court of Bermuda, where they company was incorporated.
"Under Bermuda law, appraisal of a fair share price by the court ... was plaintiffs' exclusive remedy," according to the judgment. "Because plaintiffs failed to avail themselves of that remedy, they cannot maintain this cause of action."
Amway Asia Pacific's Bermuda incorporation was thrown into the political ring, with Democrats claiming it could have been a move to dodge taxes.
It looks like Dick DeVos's decision to incorporate Amway Asia Pacific in Bermuda is working out for Dick DeVos. How is it working out for you Michigan?