Lawsuit, Another Law Firm Probe Target Dial Global-Cumulus Deal
September 25, 2013 at 3:58 AM (PT)
The shareholder law firms are circling the $260 million CUMULUS-DIAL GLOBAL/WESTWOODONE deal, with one lawsuit filed and another firm announcing investigations of the deal for breach of fiduciary duty.
BRODSKY AND SMITH LLC, with named plaintiff GUARANG SHAH, filed a putative class action suit against the deal in NEW YORK state Supreme Court, alleging that the DIAL GLOBAL board breached its fiduciary duty to shareholders by accepting and recommending compensation under the true value of the company.
Meanwhile, FARUQI AND FARUQUI, LLP issued a press release announcing that it is investigating whether DIAL GLOBAL's board of directors breached their fiduciary duties to shareholders by "failing to conduct an adequate and fair sales process prior to agreeing to this proposed transaction." BRODSKY AND SMITH, POMERANTZ GROSSMAN HUFFORD DAHLSTROM AND GROSS, LEVI AND KORSINSKY, and RIGRODSKY AND LONG previously announced their own investigations of the deal (NET NEWS 9/5).