Turtle Beach explores options to defend against hedge fund

Turtle Beach Corp is looking at strategic alternatives including a possible sale, the company said, as it seeks to defend itself against a hedge fund which is seeking to replace all of the gaming equipment company’s six board members.

Investment advisory firm Donerail Group and Turtle Beach have both made regulatory filings urging the company’s investors to back their candidates at this year’s annual meeting.

The company said that Donerail, which had earlier attempted to buy Turtle Beach, has issued public letters and press releases with misleading and false information regarding the company and its performance.

Turtle Beach said that it will continue to engage in discussions with strategic acquirers and private equity firms to explore a sale.

Donerail said that the Turtle Beach board must be replaced citing its compensation package that was in line with companies much larger than itself, adding that the board cannot be trusted.

Earlier in March, Donerail Group said in a letter to shareholders that it was working with another asset manager to uproot the company’s board and nominated six directors.