Now It's Emmis Suing Alden Capital For 'Short-Swing' Violation
March 25, 2011 at 5:19 AM (PT)
EMMIS COMMUNICATIONS CORP. has filed suit against shareholder ALDEN GLOBAL CAPITAL accusing the fund and managing member RANDALL D. SMITH, alleging that the latter's purchase and quick sale of EMMIS stock in FEBRUARY, MARCH, and APRIL 2010 constituted violations of the SEC's "short-swing" rules against profiteering.
Financial blog WHO'S IN MY FUND? reports that the disputed transactions, a series of cash-settled equity swaps that were terminated, yielded ALDEN a profit of approximately $310,000, violating the rules against large shareholders trading a stock less than six months after its last trade of the same stock.
The suit in U.S. District Court for the Southern District of NEW YORK is the latest in a back-and-forth series of actions between ALDEN and EMMIS CEO JEFF SMULYAN, starting with SMULYAN's suit against ALDEN in SEPTEMBER, followed by ALDEN's suit against EMMIS in FEBRUARY.