An activist investor seized control of Ethan Allen’s board on Wednesday after alleging that a board director had beforehand used a biopharmaceutical company she beforehand headed as her own “personal piggy bank,” according to court filings.
Doug Bergeron launched a proxy battle in August with a 5.2% stake in the struggling upscale furnishings company with the aim of taking control of its 5 board seats and naming a new chief government.
The former CEO of Verifone won three seats at the company’s shareholder assembly on Wednesday in Danbury, Conn., including the one held by — Cynthia Ekberg Tsai — who confronted critical allegations by a previous employer that were not disclosed to shareholders, Bergeron alleged primarily based on court filings from 2013.
The Ethan Allen furnishings chain is dealing with a proxy battle from activist investor Doug Bergeron. Mahmoud Suhail – stock.adobe.com
“The research we dug up played a role,” Bergeron advised The Post regarding the shareholder vote. “But the election was driven by lots of bad performance and an entrenched board and management.”
Tsai, a director since 2021, was chairman and CEO of biopharma company Viropro from 2012 to 2014. She was fired and sued by the company 12 years in the past, according to a lawsuit filed in New York State Supreme Court.
Viropro claimed that “destroyed records” prevented it from accounting for $491,000 in funds that “it is alleged Tsai spent for her own purposes,” according to court filings. Tsai has beforehand vigorously denied these allegations.
Among the allegations were that Tsai charged Viropro for “spa visits during which she purchased massage, manicure and pedicure treatments on a weekend,” according to the go well with.
She “similarly defrauded Viropro into reimbursing her for a trip to the Vatican she took with her mother in April 2013…while Viropro struggled to pay its most basic bills,” the grievance alleges.
“Tsai has also regularly drained Viropro’s limited resources with unnecessary frequent travel to Malaysia for long periods of time every few months,” the lawsuit claims.
Cynthia Ekberg Tsai speaks during an interview on Dec. 21, 2025. YouTube/Big Sky Economic Development
The case was finally settled but prior to the settlement, the court discovered that Tsai was in “civil contempt” for destroying “electronic records of her emails,” according to the court.
Tsai, 70, did not immediately reply to a request for remark.
In a 2019 letter to the court, Tsai’s attorney alleged that she joined Viropro when it had “less than $1,000 in its banks accounts” including that her efforts “brought investment, credibility, customers and management to an otherwise insolvent business enterprise.”
The letter also states that Viropro’s claim about the $491,000 in lacking funds “is without foundation” and a “malicious effort to cause harm.”
Ethan Allen CEO Farooq Kathwari has led the company since 1988. Getty Images
The letter alleges that Tsai was not paid the $202,000 wage she was owed.
After Bergeron disclosed his findings on Tsai last week, Ethan Allen beneficial that shareholders reelect all of its administrators.
Bergeron was “recycling allegations from more than a decade ago that were never proven,” the board had said in a Tuesday assertion before the shareholder vote, including, “There was no trial and no finding of fraud or breach of fiduciary duty” and that the case was settled.
“The Board was informed of the matter before Ms. Tsai was appointed to the Board. Cherry-picking select information to serve one’s own goals is not the kind of leadership shareholders need on the Board,” the company said.
Bergeron claims that Tsai hid her ties to Viropro from shareholders, which he first found last week through a Google Gemini AI search. Tsai’s previous involvement with the Nevada-based company – which is now defunct – did not seem on her Ethan Allen bio or on her LinkedIn profile this week.
Doug Bergeron launched his proxy battle against Ethan Allen in August.
Bergeron also took intention at longtime CEO, Farooq Kathwari, 82, who has led the company since 1988 and is also its chairman.
The company’s revenues have declined over the previous several years, hitting $579 million in fiscal 2026 in contrast to it’s $1.03 billion peak in 2006, largely because it has not saved up with the digital world, Bergeron claims.
“It’s a management team and board that has let modern retailing escape them,” Bergeron advised The Post.
Ethan Allen’s shareholder assembly is on Nov. 4. wolterke – stock.adobe.com
Nevertheless, on Tuesday night at Bergeron’s suggestion, he and Kathwari had an amicable dinner in Larchmont, NY, where the retail government resides.
Kathwari was voted off of the board right this moment, along with Tsai and another director, David Sable. Kathwari announced in August that he would launch a CEO search after Bergeron’s proxy battle.
“I hope [Kathwari] will be chairman emeritus,” Bergeron advised The Post. “He’s a great ambassador for the company.”
The newly elected board will soon vote on a chairman and CEO, Bergeron said. Ethan Allen’s other two new administrators are Steve Oblak, a former Wayfair government and Kristine Miller, a former Ebay government.
Independent proxy advisory companies, Glass Lewis and Egan-Jones Proxy Services beneficial that buyers vote for all 5 of Bergeron’s candidates.
Bergeron’s expertise contains the 2001 acquisition of VeriFone from Hewlett-Packard for $50 million. He grew to become the company’s chairman and CEO, stepping down in 2013 after several quarters of weak financial outcomes.
His departure was sudden and the company’s shares rose by 9% after the announcement.
“The board asked if I wanted to resign,” Bergeron advised The Post. “My board did the right thing saying after 13 years, maybe it’s time for fresh eyes.”