As a follow up to our 10/16 note, we've got some more Hyatt tidbits.
Looks like some of the revisions in the 4th version of the S-1 addressed some of the contentious issues between the Pritzkers. Below is another glimpse of Pritzker dirty laundry and the conflicts presented by the dual voting structure of the Class A & B Shares.
Risks of Pritzker family drama to future shareholders
“Disputes among Pritzker family members and among Pritzker family members and the trustees of the Pritzker family trusts may...
- result in significant distractions to our management
- disrupt our business
- have a negative effect on the trading price of our Class A common stock and/or generate negative publicity about Hyatt and the Pritzker family
Ghosts of past Pritzker disputes
- “In the past, disputes have arisen between and among certain Pritzker family members, and between and among beneficiaries of the Pritzker family trusts and the trustees of such trusts, with respect to the ownership, operation, governance, and management of certain Pritzker family business interests
- “In certain cases, proceedings were initiated, against certain Pritzker family members, including Thomas J. Pritzker, our executive chairman, and other Pritzker family members, some of whom have been or are our directors, and against the trustees, including Thomas J. Pritzker
- “Such past allegations related to trust management and administration, and violations of certain trustee duties, including fiduciary duties.
- “Some of these disputes led to significant negative publicity for the Pritzker family.”
Disputes regarding Hyatt IPO
“Recently, with respect to Hyatt, disputes arose between and among certain Pritzker family members and the trustees of trusts with respect to our dual class structure, which will become effective prior to the completion of this offering.