Judge Grants Emmis' Dispositive Motions In Case Brought By Dissident Preferred Shareholders
March 4, 2014 at 8:22 AM (PT)
EMMIS COMMUNICATIONS has prevailed again against dissident preferred shareholders challenging the company's right to strip preferred shares of voting rights and dividends.
Judge SARAH EVANS BARKER of the U.S. District Court in the Southern District of INDIANA has ruled in granting EMMIS' motion for judgment on the pleadings and partial summary judgment in the 2012 case brought by CORRE OPPORTUNITIES FUND, LP and other preferred shareholders that INDIANA law does not impose a fiduciary duty on corporations to shareholders, which the plaintiffs attempted to argue would apply due to the unique circumstance that EMMIS itself is the controlling shareholder of its own stock and owed a duty to minority shareholders.
Read the court order here.