A group of former Miami-based Cano Health directors have urged shareholders to vote against some current board members and allow for nominations of other people. The annual shareholder meeting is set for June 15.
Elliot Cooperstone, Lewis Gold, MD, and Barry Sternlicht, who together hold about 35 percent of Cano Health stock, have also recently called for the removal of Cano Health's CEO, Marlow Hernandez, DO, given ethics concerns and what they say is damaging leadership performance.
"There is significant value trapped within Cano's languishing shares," the group said in an SEC filing. "Unfortunately, as previously undisclosed related party transactions, stock pledges and other troubling agreements and arrangements have recently come to light, we have lost faith in the remaining board's ability to effectively and objectively oversee management as it pursues a highly questionable strategy."
Remaining Cano Health directors are "fully aligned" with the company's strategy, Dr. Hernandez said May 9, when the company reported a $60.6 million loss for the first quarter. He criticized the behavior of the former directors, accusing them of a "highly disruptive" campaign to oust him.