Caterpillar Directors Sued Over Alleged Company Asset Waste
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Caterpillar Inc., the world’s largest maker of construction and mining machines, was sued by investors who allege directors wasted corporate assets by not ensuring that executive-incentive plans were tax-deductible.
Board members also wrongly enriched themselves by taking compensation that couldn’t be deducted, and the company made insufficient disclosures to stockholders, lawyers for a Philadelphia asbestos workers’ pension fund and the Lansing, Michigan, Police and Fire Retirement System said in two lawsuits filed yesterday in federal court in Wilmington, Delaware.