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
FCC Fines Drawing Scrutiny In Congress
In Brief - November 24, 2015
November 23, 2015
Bill Hess Named OM At Cumulus-Washington, D.C.
In Brief - November 23, 2015
November 20, 2015
Adams Radio Group Of Delmarva Names Jay Gleason Operations Manager
iHeartRadio Presents Adele¹s Album Premiere Live from Joe¹s Pub 
Radio Mercury Awards Announces Advisory Council
November 19, 2015
Westwood One: The State of American Podcasting
Nielsen: Connecting With Political Millennials Through Music
Jacobs Media Webinar: 10 Mega Trends That Impact Radio
November 18, 2015
Republic Records Promotes Ben Adelson To SVP/A&R
Y100’s TC Wins Dancing with the Savannah Stars
Greater Media's Magic 106.7 To Become Boston's Christmas Station
November 17, 2015
Alissa Pollack To Be Honored At T.J. Martell Foundation’s 16th Annual New York Family Day
Cash Money Records Announces Annual Turkey Giveaways in Miami & New Orleans
Amanda "AJ" Malone Joins iHeartMedia/Indianapolis
Jacobs Media Blogs Radio’s Days as a Primary Traffic Source May Be Numbered
November 16, 2015
Pandora to Acquire Key Assets from Rdio
Apple To Close Beats Music
Entercom Adds Ashley O. To Mornings On WSFS/Miami
In Brief - November 16, 2015
November 13, 2015
Pierre Bouvard: "Pandora’s CFO Is Wrong, Radio Listening Remains Remarkably Stable"
Music News
Adele's 25 Smashes Sales Record
Quick Hits: Charlie Puth, Coldplay, Jack Ü
Bieber, One Direction Lead Billboard 200 Shakeup
One Direction, The Weeknd Win Multiple AMAs
Rihanna Announces Anti World Tour, Teases New Album
Foo Fighters Release Free EP
Quick Hits: Coldplay, U2, The Cure, Wilco
Chris Martin Talks Influences On New Coldplay Record
Quick Hits: Foo Fighters, Justin Bieber & One Direction, American Music Awards, Paris attacks, Tori Kelly
Adele's 25 Won't Be On Streaming Services
Quick Hits: Kelly Clarkson, Missy Elliott, Jimmy Eat World, Freddie Mercury, Bonnaroo
Zayn Malik Opens Up About One Direction Exit
Quick Hits: Firefly Music Festival, Eagles of Death Metal, Grammy Hall of Fame
Adele Unleashes Video For "When We Were Young"
Quick Hits: Tom Petty, Bruce Springsteen, Tool, Hangout Music Festival, Oasis

Manny Simon
VP/Adult Formats,
Republic Records

Search FMQB.com
FMQB Member Login

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