Lawsuits Challenge Emmis Buyout
May 17, 2010 at 4:28 AM (PT)
Two shareholder lawsuits have been filed against EMMIS COMMUNICATIONS Chairman JEFF SMULYAN's plan to take the company private.
The suits, filed by investor WILLIAM MCQUEEN through KROGER GARDIS AND REGIS and investor DAVID JAROSCLAWICZ via COHEN AND MALAD, were filed in MARION SUPERIOR COURT in INDIANA and are seeking class action certification.
SMULYAN and ALDEN GLOBAL CAPITAL have offered $2.40 per share for shares held by other stockholders. Both suits claim that SMULYAN is trying to buy up shares at depressed prices just as the company and the market are entering a turnaround phase.
Other suits are expected to be filed against the deal in coming weeks.