Acxiom Corp. to Face Conflict of Interest Suit

July 15, 2005 ( - The Indiana State District Council of Laborers and Hod Carriers Pension Fund has filed a lawsuit against Acxiom Corp., claiming the company's board of directors has too many conflicts of interest to properly consider a takeover bid by a San Francisco investment firm, according to a Web site news report. reports that the lawsuit says, “Through his domination and control of the other members of the Acxiom Board, [Company Leader and board Chairman Charles] Morgan has been permitted to run the Company like his own private fiefdom to the detriment of shareholders.”

The San Francisco firm ValueAct Capital Partners LP has made a bid to buy the 89% of Acxiom shares it doesn’t already own, a $1.8 billion bid, according to the Web report.  

The suit claims that Morgan’s control over other board members and his desire to keep his job will prevent the board from being objective in considering the bid.

Acxiom’s board has not responded to the suit’s claims, the Web report said.