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Investor seizes control of Ethan Allen after alleging director had used biopharma company as ‘personal piggy bank’
Investor Doug Bergeron won three of Ethan Allen’s five board seats at Wednesday’s shareholder meeting, gaining control after a proxy battle over the struggling furniture company’s leadership and performance. He also highlighted past allegations against director Cynthia Ekberg Tsai, saying they played a part in the vote; the company’s board disputed his use of the claims.
A 2013 lawsuit by biopharmaceutical firm Viropro accused Tsai, its former chief executive, of misusing funds, including $491,000 it said could not be accounted for. Tsai denied the allegations, and her lawyer said the claim was unfounded; the case was settled, with no trial or finding of fraud, according to Ethan Allen’s board. Bergeron holds a 5.2% stake and has also criticised chief executive Farooq Kathwari, citing revenue of $579 million in fiscal 2026, down from a peak of $1.03 billion in 2006.
In short
- Activist investor Doug Bergeron won three Ethan Allen board seats.
- The vote followed concerns over performance and allegations involving a director.
- Ethan Allen’s fiscal 2026 revenue was $579 million, down from its 2006 peak.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Supporters of Bergeron’s takeover can argue that shareholders had reason to seek change after Ethan Allen’s revenue fell substantially from its earlier peak, and that winning three board seats gives him a mandate to pursue a different strategy. They may also say that scrutiny of Tsai’s past, disputed conduct was relevant to voters assessing the board, provided the allegations are clearly distinguished from proven findings.
The case against
Those opposed to Bergeron’s approach can argue that a revenue decline alone does not establish that the incumbent leadership is responsible or that a new controller will improve the business. They may also object to invoking allegations that Tsai denied and that were settled without a trial or finding of fraud, warning that this risks unfairly damaging a director’s reputation.