Cox Prelim Q1 Revs Fall; Shareholder Suit Filed Over Buyout
April 15, 2009 at 4:50 AM (PT)
COX RADIO issued preliminary first-quarter financial data TUESDAY that showed net revenues down from $97.8 million to $75.5 million. Operating cash flow fell from $31.4 million to $11.4 million, and EBITDA also dropped, from $27.9 million to $10.6 million. The numbers were released in a Form 8-K filing with the SEC.
Proposed Class Action Suit Filed
Meanwhile, the SHAREHOLDERS FOUNDATION has announced that it has filed a proposed class action suit against COX RADIO, its board, COX ENTERPRISES, and COX MEDIA alleging breaches of fiduciary duty in handling the proposed buyout of outstanding COX RADIO shares by parent COX ENTERPRISES through COX MEDIA. In a press release, the SHAREHOLDERS FOUNDATION alleged that "the tender offer serves no legitimate business purpose of COX RADIO but rather is an attempt by the defendants to enable COX ENTERPRISES to benefit unfairly from the transaction at the expense of COX RADIO's public shareholders and COX ENTERPRISES has breached and will breach their duty as controlling stockholder of COX RADIO by engaging in improper overreaching in attempting to carry out the tender offer."