Lovenheim v. Iroquois Brands, Ltd.

Peter Lovenheim (plaintiff), a shareholder of Iroquois Brands, Ltd. (Iroquois) (defendant), sought to include in the company's proxy materials a resolution addressing the allegedly inhumane force-feeding practices used to produce foie gras that Iroquois imported; Iroquois refused, relying on an SEC rule permitting omission of proposals relating to operations accounting for less than 5 percent of total assets and "not otherwise significantly related" to the company's business, since foie gras represented well under 5 percent of Iroquois's operations. Lovenheim argued the proposal's ethical and social significance meant it was still "otherwise significantly related" to Iroquois's business despite its minimal economic footprint.