Libsyn Settles Investor Lawsuit, CFO Exits

Settlement

The lawsuit against LIBERATED SYNDICATION (LIBSYN) against dissident shareholder CAMAC FUND, LP and affiliates CAMAC PARTNERS, LLC, CAMAC CAPITAL, LLC and CAMAC founder and managing member ERIC SHAHINIAN has been settled, and LIBSYN CFO JOHN BUSSHAUS has exited the firm.

The settlement includes SHAHINIAN and PALM ACTIVE PARTNERS Managing Dir. BRAD TIRPAK joining the LIBSYN board along with at least one new independent director and CAMAC withdrawing its request for a special meeting and dismissing its lawsuit. LIBSYN is also reimbursing CAMAC for up to $600,000 in out of pocket expenses.

As for BUSSHAUS, his exit follows an SEC complaint against him and LIBSYN CEO CHRIS SPENCER regarding negligence and misrepresentation at LIBSYN's former parent company FAB UNIVERSAL; the allegations are not connected to operation of LIBSYN. Controller GABRIEL MOSEY has been named Interim CFO at LIBSYN.

"We are pleased to have reached a resolution that we believe is in the best interests of all LIBSYN shareholders," said SPENCER. "We look forward to adding new directors to our Board and believe the new independent voices will complement those of our existing directors. LIBSYN is performing well, as evidenced by the strong third quarter podcasting subscription growth announced this week, and we believe the Company is well positioned to continue executing on our strategy and enhancing shareholder value."

"We are pleased to reach this agreement with LIBSYN that brings fresh perspectives to its Board and positions the Company for future value creation," said SHAHINIAN. "LIBSYN is a wonderful business, and we believe this agreement will drive enhanced value for all shareholders, employees and customers."

Under the settlement agreement, SHAHINIAN will chair the Compensation Committee and Strategic Review Committee and TIRPAK will join the Audit Committee. CAMAC will have the right to approve new independent directors, and the company's director slate for the 2020 annual meeting will include at least one additional new independent director. A Strategic Review Committee will be formed, and 300,000 shares have been cancelled from equity grants from APRIL 13, 2017, with the shares to be split between SPENCER and BUSSHAUS.

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