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
European Music Industry Reacts to "Brexit"
iHeartMedia-Nashville Names Morgan Huelsman Digital PD
In Brief - June 24, 2016
June 23, 2016
Republic Records Names Dan Cohen As VP/Marketing
WMMR/Philadelphia's 11th Annual I Bleed For Preston & Steve Blood Drive Hailed A Big Success
CBS Radio's Lisa Dent, Tim Roberts & Mick Anselmo Honored By Country Radio Hall Of Fame
June 22, 2016
Cumulus Media Appoints John Abbot as Chief Financial Officer
iHeartMedia Cannes Event With Ryan Seacrest And Usher
Berlin School & iHeartMedia Announce Return Of 'Leadership in Audio Innovation' Scholarship Competition
iHeartMedia/St. Louis Announces Launch Of Pride Radio St. Louis
June 21, 2016
Community Broadcasters Purchase Florida Stations From Apex Broadcasting
jācapps to Host Webinar on Understanding the Connected Car
NAB Introduces Inaugural PILOT Innovation Challenge
Report: Syndicated Radio Morning Host Kane Arrested For Allegedly Assaulting Wife
In Brief - June 21, 2016
June 20, 2016
Public Voting for National Radio Hall of Famers Starts Today
Music Artists & Industry Unite for DMCA Reform Appeal
iHeartMedia Launches First Programmatic Private Marketplace For Digital Radio
In Brief - June 20, 2016
June 17, 2016
CBS Radio Houston Names Rich Pangilinan APD/MD At KKHH (Hot 95.7)
Nielsen: The Modern Dad: An Untapped Audience For Marketers
Alpha Media Portland Names Kelsey McDaniel Director of Marketing
June 16, 2016
iHeartMedia Names Dan Mason as Senior Advisor for Broadcast Relations
Y100 Announces Mia Amini as Assistant Program Director
Music News
Kelly Clarkson Signs Worldwide Deal With Atlantic Records
Quick Hits: Bernie Worrell, Rihanna, Aerosmith, Kennedy Center Honors, Ralph Stanley
Led Zeppelin Wins Copyright Trial
Quick Hits: Kanye West, The BET Awards
Kanye West, The Weeknd + more to play The Meadows Music and Arts Festival
Quick Hits: Music Midtown festival, Drake, Chance the Rapper. Outta This World concert, Maynard James Keenan
Nick Jonas Debuts at #2, Drake Still Tops Billboard 200
Quick Hits: Made In America festival, Drake, Rita Ora, P.M. Dawn, Grouplove, The Beatles
Quick Hits: Guns N' Roses, Christina Aguilera, Meat Loaf, Suicide Squad soundtrack
The Recording Academy Announces Amendments and Dates For Grammy Voting
Quick Hits: Phantogram and Tupac Shakur
Quick Hits: Kanye West, The Grammys, Deftones, Lollapalooza, Charlie Puth
Kanye West Announces Saint Pablo Tour
Quick Hits: Iggy Azalea, Colbie Caillat, BET Awards, Breakaway Music Festival
Singer Christina Grimmie Shot and Killed After Concert
FMQB NOW

Brad Savage, PD
WAPS/Akron

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!