Kraher & Trapani LLP and Wolf Popper LLP Announce Significant Settlement for EACO Corporation Shareholders

Important Update on EACO Corporation's Derivative Action Settlement

In a significant development for investors of EACO Corporation, Kraher & Trapani LLP and Wolf Popper LLP have announced the settlement of a derivative action involving the company. The Circuit Court of the Seventeenth Judicial Circuit, based in Broward County, Florida, has approved the notice regarding this settlement, which affects all record and beneficial holders of EACO's common stock as of January 12, 2026.

On February 9, 2026, the court issued an order pertaining to the ongoing shareholder derivative action titled Alluvial Fund, LP v. Glen F. Ceiley, et al. (Case No. CACE-24-012180). This action asserts multiple claims against various directors and officers of EACO regarding a transaction involving the acquisition of real property owned by EACO's controlling stockholder.

The announced settlement, encapsulated in a Stipulation and Agreement of Settlement, Compromise, and Release, is poised to bring several changes to EACO’s corporate governance structure. EACO's Board of Directors has committed to implementing specific governance measures related to transactions with its controlling stockholder over a period of five years. This move is aimed at enhancing transparency and accountability in the company's dealings.

Additionally, the settlement involves a financial aspect where $350,000 will be disbursed to EACO’s minority shareholders on a pro-rata basis. Furthermore, the defendants or their insurers will cover reasonable attorney fees for the plaintiff and the costs associated with administering the settlement, including giving notice to all affected shareholders.

A noteworthy point of this arrangement is the potential for the plaintiff to request a service award of up to $3,000, intended to compensate them for their efforts in this action. This award would be financed from any fee and expense information provided to the plaintiff's counsel. The defendants continue to deny any wrongdoing, emphasizing their ongoing commitment to operate within legal frameworks while resolving this dispute amicably.

The hearing for this proposed settlement has been scheduled for June 10, 2026, at 9:30 a.m., which will be conducted via Zoom videoconference and in the Circuit Court of the 17th Judicial Circuit in Fort Lauderdale, Florida. Shareholders are advised that they need not appear at the hearing unless they wish to voice objections or contribute to the conversation around the settlement terms.

For those impacted, additional information, including how to lodge any objections to the settlement, can be found in the Full Notice of Pendency of Proposed Settlement at www.EACODerivativeSettlement.com. This comprehensive resource offers access to all relevant documentation for shareholders wanting clarity about the proceedings.

This proposed settlement represents a critical moment for both the company and its shareholders, offering a pathway to resolve outstanding issues while fostering a cooperative, responsible governance model moving forward. Stakeholders should stay informed and consider the implications of these changes on their investments in EACO Corporation as developments unfold.