BT Brands files lawsuit against Noble Roman, directors

The company said, “BT Brands in an important step in its effort to achieve a fair vote for Noble Roman shareholders, together with CEO Gary Copperud, on August 2, 2023, filed a lawsuit in Federal Court for the Southern District of Indiana naming both the Company, Noble Roman’s, and its Directors as Defendants. The suit alleges that the Company and its Directors violated federal law in omitting material information from its Definitive Proxy Statement, that the Company and its Directors have violated their fiduciary duties in attempting to prevent BT Brands’ nomination of Mr. Copperud, frustrating the expressed will of an overwhelming number of shares. The lawsuit notes that Mr. Copperud was recognized as an approved candidate for election as a director at the July 6, 2023, Noble Roman annual meeting of stockholders, scheduled for August 10, 2023. A recent tabulation of votes shows shareholders favor Gary Copperud, BT Brands, Inc.’s nominee, leading Scott Mobley, NROM’s nominee, by several million votes representing nearly a 3.5:1 margin of potential victory. Also, today, BT Brands and Mr. Copperud together filed a motion requesting the Court to order the Company and its Directors to hold an annual meeting at which Mr. Copperud’s nomination will be duly considered, the votes in his favor counted, and the results of the shareholders’ directive respected. Owning a combined stake of more than 8% of NROM shares, BT Brands nominated Mr. Copperud to serve as a director of NROM to add a fresh perspective to its board, including reviews of policies concerning executive compensation and corporate borrowing. In a move made after it became clear that Mr. Copperud would defeat Mr. Scott Mobley, just nine days prior to the original shareholder annual meeting date, NROM declared that, despite initially enabling and recognizing Mr. Copperud’s nomination, the nomination was deemed to be not in compliance with Noble Roman’s Bylaws and therefore, the nomination would not be considered as valid. because BT Brands’ and Mr. Copperud’s shares were held in brokerage accounts in “street name” rather than in certificate form under a separate listing on the Transfer Agent’s shareholder list. Preliminary voting results show that steps to disqualify Mr. Copperud frustrating the shareholders’ overwhelming desire to inject fresh ideas onto the board have not damped the shareholders’ desire to cthank hoose Mr Copperud to replace Mr. Mobley. As stated publicly, BT Brands expects to continue investigating, including seeking documents required to be produced under Indiana law, NROM’s actions and exploring all available remedies under Indiana and Federal law.”