Calpers vs. Lonestar

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Calpers vs. Lonestar

CalPERS vs. Lonestar Steakhouse & Saloon

Chronology of Events

|Date |Event |
|2/22/00 |CalPERS releases Focus 10 List featuring Lonestar |
|7/11/01 |Dissident shareholder Guy Adams, endorsed by CalPERS, is |
| |elected to the Board and replaces CEO and Chairman Jamie |
| |Coulter |
|10/18/01 |CalPERS files a lawsuit against Lonestar for acts of |
| |“self-dealing” |
|12/20/02 |Court dismisses some of CalPERS “self-dealing” claims on |
| |Lonestar |

The active investment program started on February 22, 2000 when the California Public Employee’s Retirement System (CalPERS) released its Focus 10 list. The nation’s largest pension fund, whose assets total more than $175 billion, broadcasts this list annually to serve as the focal point of their strategies to correct corporate governance, stock performance, and economic evaluation in 10 U.S. companies it deems as underperforming. On this announcement, Lonestar Steakhouse & Saloon (STAR) finds itself a part of CalPERS’ agenda in the year 2000. This comes after some of the worst performance in the restaurant industry as well as some corporate governance problems that needed to be addressed. In the following outline of the program, the many

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