SBS Wins Summary Judgment, Shareholder Cases Dismissed
March 4, 2014 at 3:54 AM (PT)
SPANISH BROADCASTING SYSTEM, INC. has notified the SEC that it has won summary judgment in the cases brought against it by LEHMAN BROTHERS HOLDINGS INC. and T. ROWE PRICE over non-payment of dividends and impermissably incurring indebtedness in the purchase of Spanish Independent KTBU (TV) (MEGA TV)/CONROE-HOUSTON, TX.
LEHMAN BROTHERS sued SBS on FEBRUARY 14th, 2013 in DELAWARE Court of Chancery looking for a declaratory judgment that because SBS had not paid dividends, a "Voting Rights Triggering Event" had occurred for Series B Preferred Stock holders and the company was thereby barred from adding debt but did so in the KTBU purchase.
T. ROWE PRICE funds filed a separate suit on similar grounds plus a claim for breach of the implied covenant of good faith and fair dealing on JUNE 17th, 2013; the suits were consolidated upon SBS' motion on JULY 3rd, and on FEBRUARY 25th, 2014, SBS' motion for summary judgment and judgment on the pleadings were granted and the claims dismissed.