Shareholder Suit Targets Clear Channel LBO
November 20, 2006 at 5:53 AM (PT)
The CLEAR CHANNEL buyout faces an additional legal hurdle with a shareholder suit filed THURSDAY in TEXAS.
The suit by plaintiff LOU ANN MURPHY seeks class-action status and charges the company and its directors with breaching their fiduciary duties to shareholders with the LBO that will leave the company privately held by the MAYS family, BAIN CAPITAL PARTNERS LLC, and THOMAS H. LEE PARTNERS at a price the suit calls "wholly inadequate."
MURPHY filed suit in the 166th Judicial District court in BEXAR COUNTY (SAN ANTONIO),