In the news release, Edward and Ludmila Smolyansky Request
Lifeway Foods Inc. NASDAQ (LWAY) CEO Julie Smolyansky Immediately
Withdraws Her Lawsuit Against Edward Smolyansky. Reiterate and
Reaffirm Singular Goal Amid Ongoing Activism Battle, issued
03-Feb-2025 by Edward and Ludmila Smolyansky over PR Newswire,
we are advised by the company that "Withdraws" in the headline
should read "Withdraw". The complete, corrected release
follows:
Edward and Ludmila Smolyansky Request Lifeway Foods Inc. NASDAQ
(LWAY) CEO Julie Smolyansky Immediately Withdraw Her Lawsuit
Against Edward Smolyansky. Reiterate and Reaffirm Singular Goal
Amid Ongoing Activism Battle
- Summarizes recent filings and next steps, previews upcoming
proxy schedule
- Reaffirms and updates previously stated goal
CHICAGO, Feb. 3, 2025
/PRNewswire/ -- Edward and Ludmila Smolyansky ("Founding
Shareholders"), who together exercise sole voting control with
respect to approximately 28% of the outstanding shares of common
stock of Lifeway Foods, Inc. ("Lifeway" or the "Company"), today
requested that Lifeway's Board of Directors force its CEO and
Chairperson, Julie Smolyansky to
immediately withdraw her most recent lawsuit filed in Cook County, IL against the Company's largest
individual shareholder Edward
Smolyansky.
On December 23, 2024, Lifeway's
Compensation Committee, led by director Jason Scher, awarded what was described as a
$2 million "retention bonus."
The Smolyanskys believe this was yet another desperate leverage
tactic to enable Julie Smolyansky to
continue to fund her war against the Founding Shareholders.
Directors Scher and Pol Sikar in particular, given their decades
old family ties to Julie Smolyansky
and her spouse and former jeweler, Jason
Burdeen, have deep and conflicting personal motives that run
contra to those of the rest of the Company's shareholders. These
obvious conflicts are presented at www.lifebacktolifeway.com.
Additionally, the Smolyanskys intend to expand their ongoing
investigation, which began in 2019 and which followed the departure
of two CFOs in 2018 alone and ultimately led to the departures of
two independent directors and the Company's general counsel shortly
thereafter.
Edward Smolyansky said, "Lifeway
seems determined to plunge the Company deeper and deeper into
litigation this time via proxy by Julie. We look forward to
providing all shareholders a fully transparent accounting of the
inner workings of America's Worst Governed Publicly Traded
Company."
Ludmila Smolyansky stated, "After
they cut a check to Julie for $2
million, I anticipated that she would file a lawsuit against
Edward the following month." Mrs. Smolyansky continued, "On
January 23, Julie filed suit. In
anticipation of this, on January 3, I
began to sell some of my shares to defend Edward. I have no choice,
as Lifeway's legal counsel has refused to provide the adequate
paperwork to Edward to monetize his holdings in LWAY as permitted
under our 1999 Shareholders Agreement between our family member and
Group Danone."
The activist campaign that The Smolyanskys launched in 2022 has
produced significant increases in the value of Lifeway's share
price, yet Julie and her Board seem determined to obstruct the
ability to monetize these assets and prohibit making significant
charitable contributions. For example, last May, the charitable arm
of the Founding Shareholders' new organization, Pure Culture
Organics, announced its commitment to the Ann & Robert H. Lurie
Children's Hospital of Chicago.
Ludmila Smolyansky stated, "While
my daughter's Board can attempt to interfere with our philanthropic
efforts, these are mere speed bumps on the road to our singular
goal, fresh new management and new independent slate of
Directors."
For more information and update to date news connect with Edward
on LinkedIn @ Edward Smolyansky and
visit www.lifebacktolifeway.com to learn more about the Proxy
Campaign.
View original
content:https://www.prnewswire.com/news-releases/edward-and-ludmila-smolyansky-request-lifeway-foods-inc-nasdaq-lway-ceo-julie-smolyansky-immediately-withdraws-her-lawsuit-against-edward-smolyansky-reiterate-and-reaffirm-singular-goal-amid-ongoing-activism-battle-302366859.html
SOURCE Edward and Ludmila
Smolyansky
