A group of shareholders has sued Darden Restaurants Inc, accusing the company of changing corporate bylaws to try to block investors' right to vote on a plan to sell or spin off its Red Lobster dining chain, the Wall Street Journal reported on Saturday.
The lawsuit comes as activist investors step up the pressure on Darden, which is struggling to reverse customer declines amid a broader slump in the casual-dining industry.
Hedge fund and activist investor Starboard Value LP, which owns roughly 5.5 percent of Darden, has urged the company to reconsider its intention of unloading the struggling seafood chain and called for a special shareholder vote on the matter.
