According to The Observer, former Xerox executive Robert Zapfel has filed a severance lawsuit against Carl Icahn, an activist investor, claiming that he was forced out of the company by Icahn’s strategy. According to the complaint, Icahn began buying Xerox shares in 2015, one year after Zapfel was hired as the CEO of Xerox Business Services. As Icahn began securing board seats and pushing for a change in leadership, Zapfel was forced to resign as CEO and eventually terminated in 2017 along with other executives. Zapfel is seeking $15 million and claims he is owed $12.7 million under his severance agreement with Xerox due to the connection between his termination and a change in control at the company.
Carl Icahn, who has a net worth of $24.7 billion, has a history of being an activist investor and causing company shakeups. Over the years, his investments have resulted in the loss of jobs and elimination of benefits for families. In the past, Icahn has either cut or attempted to oust directors at companies such as Time Warner, Occidental, Cheniere, and Yahoo. In 2020, former Navistar executives sued the truck manufacturer after Icahn bought its stocks, claiming they were terminated due to Icahn’s push for company turnover. The case was later dismissed.
SOURCE Industry Analysts Inc.