SiriusXM Stockholders Challenge John Malone In Court
August 30, 2013
SiriusXM shareholders argued in court this week that Liberty Media head John Malone acquired control over the satcaster via an unfair agreement. According to Bloomberg, attorney Mark Lebovitch made the shareholders' case in a Delaware courtroom earlier this week, claiming Malone unfairly used an investment agreement to take control of SiriusXM, without paying a premium or allowing investors a vote in the matter#
"Malone wanted to enjoy all the economic benefits of being a controlling shareholder without having any of the responsibilities," Lebovitch told Delaware Chancery Court Judge Leo Strine at a hearing in Wilmington, DE. Bloomberg says that Strine will rule at a later date on whether the investors claims should proceed.
However, lawyers representing Liberty executives and former SiriusXM directors say that the satcaster shareholders' claims should not count, because they revolve around a 2009 agreement where Sirius' directors traded away defenses against the takeover in exchange for a cash infusion from Liberty Media.
"The time to assert these claims has come and gone," said Liberty's attorney Donald Wolfe.