Emmis Gets Favorable Ruling In Shareholder Suit
March 4, 2014

Judge Sarah Evans Barker of the United States District Court, Southern District of Indiana, has ruled in favor of Emmis Communications in a 2012 suit filed by dissident preferred shareholders. Back in March 2012, Emmis sued five of its shareholders, seeking a court ruling to declare its complex stock plan legally valid. Then in April 2012, those five shareholders countersued the company, alleging violations of federal securities and state corporate laws. The suit claimed that Emmis was in the midst of a "brazen scheme" to remove the rights of its own preferred shareholders and not pay out $10 million in owed dividends.

In a copy of the ruling, which can be found here, the judge granted Emmis' motion for judgment on the pleadings of the complaint, and Partial Summary Judgment as to all other claims. The plaintiffs' motion for Partial Summary Judgment is denied. Judge Barker wrote that the shareholders failed to prove any wrongdoing on Emmis' part.

"Plaintiffs have done nothing more than cursorily assert that, because Emmis' statements regarding having 'no plans, proposals, or negotiations' were material and communicated to the public, reliance should be presumed under the fraud-on-the-market doctrine. No evidence has been designated nor arguments advanced to establish that Emmis' stock was being traded in an 'efficient market' at the time the December 2011 TO-I filing and January amendments were made," reads the ruling. "Because Plaintiffs bear the burden of proof on the issue of reliance and have invoked the fraud-on-the-market analysis, we agree with Emmis that it was incumbent on them to make such a showing. Having completely failed in that regard, the fraud-on-the-market doctrine is not available to Plaintiffs as a substitute for the individual reliance theory."

"We were confident in our position, and the federal court has confirmed it," stated Emmis President and CEO Jeff Smulyan.




 
Breaking News
Stu Bergen Named CEO, International & Global Commercial Services For Warner Music Group
JoJo Turnbeaugh Named SVP of Programming for iHeartMedia Las Vegas
In Brief - February 5, 2016
February 4, 2016
John Strazza Joins RECORDS
Greater Media Promotes Buzz Knight to SVP of Program Development
MIWs Announce Results from 2015 Gender Analysis
February 3, 2016
Leslie Moonves Named Chairman Of CBS Corporation
FADER Label Annouces New Distribution Deal With Caroline
Jeff Hickcox Returns To Beasley SWFL As Promotions & Events Director
February 2, 2016
SiriusXM Reports Major Subscriber Growth, Record Revenue in 2015
BMG US Promotes Zach Katz To President Of Music Publishing
Bentley Named MD/Afternoon Drive Host at WEDG/Buffalo
SoundExchange Ends Record-Setting Year, $800 Million to Recording Artists and Record Labels
February 1, 2016
Alissa Pollack Named iHeartMedia EVP of Global Music Marketing
Entercom Atlanta Announces Jeff Dauler to Lead Mornings On STAR 94
John Shomby Named Director Of Programming for NASH Network
In Brief - February 1, 2016
January 29, 2016
eQB NOW
Alpha Media Promotes Two Portland Stars to Music Director
Justin Ragland To Head SummitMedia Birmingham Marketing & Promotions
January 28, 2016
WDRV/Chicago Names Rob Cressman Program Director
Matt O'Grady Named Chief Executive Officer Of Nielsen Catalina Solutions
Frank Arigo Named Senior Vice President Of Marketing For Columbia Records
January 27, 2016
Music News
Rihanna Reaches #1 With Anti
Earth, Wind & Fire's Maurice White Dead At 74
The Entertainment World Remember Maurice White
Quick Hits: Rihanna, Lady Gaga, Future, The Lumineers, Stone Temple Pilots
Justin Bieber, Pitbull and More Added to Grammy Lineup
Quick Hits: Miley Cyrus, Iggy Azalea, Taylor Swift, Future
Lady Gaga to Honor Bowie at Grammys, Sing National Anthem at Super Bowl
Quick Hits: Juno Awards, Metallica, Guns N' Roses, Grammys, Joe Bunch
Quick Hits: Kanye West, Five Finger Death Punch & Shinedown, Big Boi, Disclosure, The Roots Picnic, Moonstone Festival
RIAA Announces New Certification Methods
Quick Hits: Adele, Rihanna, Red Hot Chili Peppers, Fleetwood Mac Fest, Jefferson Airplane, Smashing Pumpkins, Halestorm, Santigold
Jefferson Airplane Co-Founder Paul Kantner Passes Away
Quick Hits: Rihanna, Zayn, Kanye West, Coldplay, Shawn Mendes
TIDAL Surprises Fans with New Rihanna Album
Coldplay To Tour U.S. Stadiums
FMQB NOW

Mike “OD” O’Donnell, OM
Entercom
Scranton Wilkes-Barre, PA

Advertisement:
Search FMQB.com
Advertisements:
FMQB Member Login
Email:
Pass:

Save
Not a member yet?
Sign up Now!
Sign Up for Breaking News!
Enter FMQB E-Tracking!