Medallion Financial Corp. Exposes ZimCal’s Latest Campaign of Distortion and the Risks of Electing Its Unqualified Nominees
View original at globenewswire.comMedallion Financial Corp…
What we drew from this source
The claims Via News extracted from this document. We point to the source; we don't replace it.
Medallion's performance has been declining
60% confidenceMedallion has demonstrated consistent execution across the company's business lines
60% confidenceZimCal's goal across three consecutive proxy contests is a debt buyout at above-market price with misaligned incentives, and its campaign contains distortions about key issues
60% confidenceMedallion's total shareholder return since the transformation is 452% and has outperformed its peer group over 1-, 3-, and 5-year periods based on the true unaffected date; Hodges extends the measurement period to May 1, 2026 to manufacture a negative comparison
60% confidenceEric Kelly diverted customer revenue for personal benefit, misappropriated over 10% of customer prepayments, committed tax fraud by misrepresenting inventory risk, and terminated the CFO within two hours of a whistleblower complaint
60% confidenceOne former employee's four-year-old lawsuit against several defendants that has not proceeded beyond the pleadings stage is hardly material information
60% confidenceMedallion invested enormous time in dozens of meetings and correspondence with Hodges and always engaged in good faith; in late 2023 the Company offered to purchase his trust preferred securities at a fair price, which he rejected, demanding a premium
60% confidenceKelly allegedly asserted sole authority over the company's numbers regardless of accounting objections
60% confidenceQ1 results reflect strong loan growth requiring upfront CECL reserves (the 'growth penalty'); net income over five years totals $266 million, book value per share rose 53% since 2021, and net interest income grew at a 14.1% CAGR since 2021
60% confidenceThe Board of Directors unanimously concluded that the ZimCal nominees are materially unqualified to serve on the board of a regulated consumer lending institution and their election would introduce regulatory risk and operational disruption
60% confidenceThe SBA matter was a technical issue related to SBA rules and not a financial default; it did not arise from criticism of credit performance or concerns about meeting financial obligations, and the Company has received positive SBA feedback on the cure
60% confidenceThe Board has not held management accountable, citing director ages and tenure
60% confidenceThe Company would face a proxy contest 'every year' if it refused to buy out his debt on his terms
60% confidenceMedallion's total shareholder return is the lowest in its peer group
60% confidenceZimCal has engaged with Medallion over 50 times and been ignored or dismissed nearly every time
60% confidence