Starboard Value Acquires $500M Stake in Autodesk, Mulls Suit Over Probe

Starboard Value, an activist investment fund, has acquired a $500 million stake in Autodesk, a design-software maker. The fund is raising concerns about the timing of Autodesk's disclosure of an internal investigation that revealed executives had misled investors about the company’s free cash flow metrics and operating margins. This investigation led to the dismissal of the company's CFO, Deborah Clifford, and the company’s market capitalization now sits below $50 billion.

Following the probe, Autodesk shares initially dropped by 20%. Starboard is contemplating legal action to reopen the company’s nominating window and delay its annual shareholder meeting, which is scheduled for July 16. The activist fund believes that these steps are necessary to ensure better corporate governance and improve investor communications. Starboard is advocating for enhanced operational margins and greater transparency in the company’s financial reporting.