Activist hedge fund Starboard Value has agreed to end its litigation against comScore after the audience measurement firm appointed three new independent directors to its board.
Starboard, which holds a 4.8% ownership position in comScore, proposed Wesley Nichols, Paul Reilly and Bryan Wiener for the board. All three were approved, and another member recommended by Starboard will join the board soon.
"The appointment of these new directors will provide additional insights and valuable expertise to comScore as it continues to focus on profitability and growth. We are pleased to have worked constructively with comScore to reach this agreement, which we believe will further strengthen the Board of Directors. We are confident that the newly reconstituted board will enhance value for shareholders and improve the Company's financial reporting and operations," said Peter Feld, managing member of Starboard Value, in a statement.
Starboard brought a lawsuit against comScore in July, demanding the company hold an annual meeting.
Earlier this month, comScore took what it called “significant actions,” announcing the departure of directors William Engel, Russell Fradin, Lisa Gersh, Mark Harris, William Henderson, Ronald Korn and Joshua Peirez. Their departures from the board were individual decisions and not requested by the Special Committee consisting of Jacques Kerrest and Sue Riley, two independent directors who recently joined the company’s board.
"Since joining the Board, the members of the Special Committee have immersed themselves in the challenges and opportunities the Company faces and are working closely with the Company's management and the other Board members to move the Company forward. The announcements we are making today are strong and positive steps in the right direction. To that end, we are grateful to Messrs. Fradin, Harris, Henderson, Korn and Peirez, to Ms. Gersh and to Mr. Engel, who joined the Board through the Rentrak merger, for their considerable effort,” said Riley in a statement.