RumbleOn CEO Resigns Amid Legal Claims
RumbleOn, a powersports vehicle seller, announced on Wednesday that its former Chief Executive, Marshall Chesrown, has resigned from the board after stepping down as CEO last month. Chesrown has stated his intention to pursue legal claims against the company, claiming defamation and seeking over $57 million in damages.
In response, RumbleOn issued a regulatory filing expressing disagreement with the allegations made by Chesrown and asserting that it disagrees with the characterization of these claims.
Following Chesrown's resignation, RumbleOn appointed Mark Tkach, the Chief Operating Officer, as the interim CEO and initiated an investigation into allegations regarding Chesrown's use of company resources.
The proxy battle at RumbleOn involving Tkach, Chesrown, and former executive vice chairman William Coulter has now come to an end with Chesrown's resignation. As part of the agreement to end the proxy contest, Tkach was appointed to the board and Coulter was designated as a board observer.
In his resignation letter dated July 7, Chesrown explained that he could not continue to serve on the board due to being excluded from decision-making processes. According to Chesrown, he was barred from participating in the "vast majority" of board meetings since the beginning of the proxy contest.
Furthermore, Chesrown voiced his opposition to the payment of up to $2.5 million in adviser fees and expenses incurred by Coulter and Tkach during the proxy contest.
As a result of these developments, RumbleOn shares experienced a 2.2% decline, closing at $10.67.
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