Edward Smolyansky Calls Out Lifeway Foods' Misleading Statements in Shareholder Letter

In a firm and pointed letter to shareholders, Edward Smolyansky, the largest individual shareholder of Lifeway Foods, Inc. (NASDAQ: LWAY), publicly responded to a recent press release issued by the Lifeway Board. He claimed that the board’s communication not only contained misleading assertions but also outright falsehoods regarding the dissident nominees. This statement reinforces ongoing tensions between shareholders and the current leadership of Lifeway Foods, where governance issues are under scrutiny.

Governance Failures and Leadership Misconduct

Smolyansky emphasized that the board's personal attacks appear to be deliberate attempts to divert attention away from significant governance failures and troubling leadership conduct under CEO Julie Smolyansky. He asserted that instead of focusing on the concerns affecting shareholder value, the board chose to propagate deceptive narratives intended to sidestep accountability.

In his letter, he specifically criticized the board’s trend of relying on personal smears, particularly directed at co-founder Ludmila Smolyansky. He referred to the unsettling nature of these comments, reflecting a breakdown in professional judgment. “This reliance on misleading accusations signifies an attempt to distract from the critical governance performance that shareholders deserve to focus on. The attacks on my co-founder’s character are not only uncalled for but reveal the board’s desperation,” Smolyansky stated.

A Call for Change

As Lifeway’s annual meeting approaches, Smolyansky urged all investors to look beyond the board’s recent misleading claims and maintain a focus on the established governance failures, instability in leadership, and the ongoing lack of transparency within the company. He indicated that shareholders should prioritize these critical issues rather than get distracted by the theatrics of personal attacks.

“This behavior is typical of leaders who are terrified of losing control. Genuine and confident leadership does not resort to such tactics; rather, it works to address legitimate concerns and enhance shareholder value,” he added, asserting his belief in the need for a leadership shift in the company.

Legal Considerations and Future Steps

Additionally, Smolyansky disclosed that he has reached out to Lifeway Foods formally to request a retraction of the misleading statements. He is currently assessing potential legal actions as part of his commitment to safeguarding the interests of shareholders.

For further engagements, interested parties can connect with Edward Smolyansky via LinkedIn, where he is actively disseminating information relevant to the ongoing situation.

Important Shareholder Notices

Furthermore, it is imperative for Lifeway shareholders to stay informed about the forthcoming developments. Smolyansky noted that any solicitation of proxies will follow formal channels outlined in a definitive proxy statement, emphasizing the significance of transparency in shareholder communications. He urged shareholders to read the details of the Shareholder Proxy Statement upon availability, as it will include essential information regarding ongoing negotiations and planned enhancements for Lifeway Foods.

With tensions rising ahead of the annual meeting, the outcomes arising from this dispute may profoundly shape the future of Lifeway Foods, Inc. It remains crucial for stakeholders to remain vigilant and proactive in advocating for the company’s governance and overall direction.

As developments unfold, stakeholders in Lifeway Foods, Inc. and those monitoring the actions of its current leadership will need to keep an eye on how this discourse evolves and what implications it will have for the future of the company’s governance structure and shareholder confidence.