From CNBC: 2024-06-16 21:51:34

Activist fund Starboard Value, led by Jeffrey Smith, has acquired a significant stake in Autodesk. Concerns have been raised about the timing of disclosures related to an internal investigation that resulted in the CFO’s removal. The stake is valued at $500 million, as Starboard considers legal action to delay Autodesk’s annual meeting.

Autodesk’s internal investigation revealed executives misled investors on free cash flow metrics and operating margins. Gaps in disclosure led to the ouster of CFO Deborah Clifford. Starboard criticizes the board for withholding information ahead of the annual meeting, prompting consideration of legal action. Autodesk faces DOJ and SEC probes.

Starboard has a successful history in technology investments, including Salesforce and Splunk. The activist group aims to drive margin improvement and enhance investor communications at Autodesk. Starboard is reportedly considering legal action to push for delay of the shareholder meeting, scheduled for July 16. The situation raises concerns about shareholder rights and information disclosure.

Read more: Starboard has Autodesk stake, weighs suit over probe disclosure