(Bloomberg News circulated the following article on April 13.)
OMAHA, Neb. — A Union Pacific Corp. shareholder has sued the company’s directors, including Chief Executive Richard Davidson, contending that their handling of rail accidents and other incidents cost the company millions of dollars.
Investor David Jaroslawicz sued 12 directors on behalf of Union Pacific, the biggest U.S. railroad, saying they breached their duty to act in the best interest of the company, according to papers filed in a Utah court last week. Omaha-based Union Pacific would collect any damages in the suit, which cites costs of $103 million from a single derailment in 2000.
A series of New York Times articles last year said that Union Pacific and other railroads destroyed or tampered with evidence in crossing accidents and that the U.S. Transportation Department failed to investigate the wrecks.
“Union Pacific has received the complaint and is reviewing it with counsel,” Union Pacific spokesman John Bromley said Tuesday. “The company has no further comment at this time.”