1. DJCO refutes allegations from BuHeUI regarding software accounting practices. 2. The Company referred BuHeUI's CEO to authorities for criminal prosecution. 3. DJCO stands firm on its financial statements and governance practices. 4. Mr. Parker's demands for board seats and compensation were unanimously rejected. 5. DJCO reassures stockholders about its financial integrity amid threats.
FAQ
Why Bullish?
DJCO's decisive legal action against BuHeUI strengthens stakeholder confidence. Historical precedents show companies that defend their governance typically see a positive market reaction.
How important is it?
The ongoing legal issues and defensive posture provide critical insight into DJCO's stability. Market reactions to such corporate governance issues can influence investor sentiment significantly.
Why Short Term?
The immediate impact of legal developments can sway investor sentiment rapidly. A clear and firm stance is likely to stabilize or increase stock price in the short-term.
Daily Journal Corporation Responds to Buxton Helmsley’s Threats
LOS ANGELES, Dec. 26, 2025 (GLOBE NEWSWIRE) -- Daily Journal Corporation (symbol: DJCO) has officially referred Buxton Helmsley USA, Inc. (“BuHeUI”) and its CEO, Alexander Erwin Parker, to federal and state authorities for potential criminal prosecution. This decision follows a series of false allegations and intimidation tactics directed at the Company and its Board of Directors.
Background of the Dispute
BuHeUI, a company that has only recently become a registered shareholder of DJCO, has threatened to initiate a campaign aimed at seizing control of the Board unless a “cooperation agreement” is established. The Board of DJCO has unanimously dismissed these attempts as unfounded extortion.
In July, Mr. Parker began sending a series of misleading letters alleging that DJCO was improperly expensing software development costs, which he claimed should be capitalized under ASC 985-20. His justification was that capitalizing more expenses would inflate the Company’s net income and “unlock value.” Mr. Parker requested two Board seats and a lucrative consulting contract, predicting potential earnings of up to $24 million from a proposed compensation of 15 cents per dollar of stock appreciation. Notably, he was not even a shareholder at that time.
Recent Threats and Intimidation Tactics
Following the Company’s rejection of his previous claims, Mr. Parker has doubled down, sending at least 13 letters and emails in recent weeks that continue to allege inaccuracies in the Company’s accounting practices. These communications have evolved to include threats of a proxy contest unless his demands are met.
Moreover, Mr. Parker has targeted specific Board members with coercive threats, including:
- Threatening legal action against director John Frank unless he complied with demands to remove the CEO.
- Coercing director Mary Conlin to endorse a cooperation agreement with BuHeUI.
Company’s Stance on Financial Integrity
In response to BuHeUI's unfounded claims, DJCO has reaffirmed its commitment to its financial transparency and the integrity of its accounting practices. The Board firmly believes that there is no substance to Mr. Parker's allegations, viewing them as mere harassment aimed at coercing the Company into capitulation. Hence, they have taken the significant step of referring the situation to the authorities.
The Board has also emphasized its unwavering support for the Company’s financial statements and the accounting judgments about software development costs.
Future Implications and Proxy Contest
Looking ahead, Mr. Parker has proposed potential nominees for a proxy contest at the upcoming 2026 Annual Meeting. The Company urges these individuals to reconsider their association with such questionable tactics as employed by Mr. Parker.
The Board emphasizes that the path forward should be one of integrity and respect rather than intimidation and disrespectful maneuvers.
Conclusion
Daily Journal Corporation is taking substantial measures to protect itself and its shareholders against BuHeUI’s outright attempts at extortion. The Company reaffirms its financial standing and calls for a resolution that maintains the ethical standards shareholders expect. As this situation unfolds, DJCO remains committed to providing accurate financial reporting and defending itself against baseless threats.