Shutterfly Dissident Marathon Said Planning Proxy Fight

Shutterfly Inc. shareholder Marathon Partners Equity Management is pursuing three board seats at the digital photo website after rejecting a settlement offer of one, people with knowledge of the matter said.

Marathon Partners will file proxy fight materials with regulators this week, said the people, who asked not to be identified discussing private negotiations. The move follows months of talks with the company to address criticisms of executive compensation, acquisition strategies and performance, as well as last year’s unsuccessful effort to sell the company, the people said.