Class Action Suits Against Cumulus Dismissed
August 10, 2009 at 5:29 AM (PT)
CUMULUS has ended two class-action suits arising from the company's abortive buyout attempt in 2007 without liability, the company disclosed in its quarterly report to the SEC last week. The suits were filed by JEFF MICHAELSON and PAUL COWLES and were consolidated in GEORGIA Superior Court in APRIL; the court dismissed the derivative claims on MAY 13th.
The plaintiffs filed to voluntarily dismiss the suits on JULY 23rd, with CUMULUS saying, "No payments or other compensation was made to plaintiffs or their counsel in exchange for their agreement to discontinue without prejudice the remaining claims against defendants."
In another case in a VIRGINIA bankruptcy court, a case against the company by BARRY D. WOOD was dismissed with prejudice, leading the Company to revers an accrual of about $800,000 during the second quarter of 2009 that had previously been established to cover the case.