Engaged Capital Urges Volcano To Explore Alternatives, Begin CEO Search

(RTTNews) - Engaged Capital, LLC said Monday that it has sent an open letter to the Board of Directors of Volcano Corp. (VOLC), highlighing the multi-year history of the Volcano management's flawed long-term plans and the Board's lackadaisical oversight.

Volcano's excessive operating expenses, misinformed and value destructive capital allocation, and excessive executive compensation all stem from a profound failure of leadership, Engaged Capital said in the letter.

Engaged Capital beneficial owns about 2.64 million shares of the Volcano common stock.

"It is time for new leadership. We urge the Board to immediately commence a parallel process to evaluate strategic alternatives and conduct a search for CEO candidates with a history of driving profitability and extracting value from medical device assets," Glenn Welling, Principal and Chief Investment Officer of Engaged Capital, wrote in the letter.

Confirming the receipt of the letter, Volcano said it will carefully review and consider the ideas presented in the letter and continue its dialogue with Engaged Capital.