Canoe Health shareholders re-elected Dr. Alan Muni and Kim Rivera to the company’s board on Thursday, a victory for Dr. Marlo Hernandez, the primary care company’s embattled CEO.
The re-election thwarted the plans of three former Cano directors, who asked shareholders to withdraw support for Muné and Rivera. In March, Barry Sternlicht, a billionaire real estate investor; Dr. Lewis Gould, Co-Founder of Sheridan Healthcare; and Elliot Cooperstone, Managing Partner at Intendum Capital Partners, Canoe resigns from the board and called for Hernandez’s removal.
Three former directors, who own 35.7% of Cano’s shares, argued that Hernandez mismanaged the company and claimed that other directors had shut him out of negotiations. By attempting to get shareholders to withdraw support for Muné and Rivera, the three said they wanted to send a “clear message” to Hernandez and the other directors.
Three former directors sought to reopen the nomination window for directors by filing a preliminary injunction with the Delaware Court of Chancery last Friday to prevent Cano from holding the annual meeting of stockholders. That offer was declined.
In an emailed statement, Solomon Trujillo, president of Canoe Health, acknowledged there was a significant “abstain” vote but expressed support for Muné and Rivera. He said that Sternlicht, Gould and Cooperstone had misrepresented events and accused them of having a selfish agenda.
A company spokeswoman declined to provide details on the vote, saying it would be included in a regulatory filing.
A spokeswoman for the three former directors did not immediately respond to a request for comment.
Trujillo, a communications executive and serial investor who has served as an independent director since 2021, Canoe was named president In April. Hernandez remained as director.
In May, the company said it wanted to focus on its Medicare Advantage business and sell non-core assets, In a statement released after the meeting, Trujillo said the board is directing its energies toward executing that strategy. Among the former directors’ complaints was the company’s reluctance to sell non-core assets.