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
CBS Corporate Revenue Up 10 Percent In First Quarter
Adam Wiener Named EVP/GM, CBS Local Digital Media
iHeartRadio Breaks Another Record: 85 Million Registered Users
Greater Media Renews Relationship with Triton Digital
Live Nation Reports $1.2 Billion in Q1 Revenue
In Brief - May 3, 2016
May 2, 2016
Entercom Reports First Quarter Results
Cumulus Names Brian Demay PD of WRRM-FM/Cincinnati
CBS Radio Names Kenetta Bailey SVP/Marketing
April 29, 2016
Pandora Revenue, Listenership Rises In Q1
In Brief - April 29, 2016
April 28, 2016
SiriusXM Reports First Quarter 2016 Results
CMG Tulsa Names Nathan Reed Director of Branding & Programming at KRAV-FM
Cumulus Media Shreveport Ups Julie Kansy to PD at KQHN
ASCAP Revenue Tops $1 Billion For Second Straight Year
April 27, 2016
Blaire Galaton-Kelleher Joins “The Jack Diamond Morning Show” On WRQX/Washington, D.C
Premiere Networks To Provide Distribution For Aiir
Radio Milwaukee Names Glenn Kleiman Executive Director
In Brief - April 27, 2016
April 26, 2016
CBS Radio Las Vegas Promotes JB King to Operations Manager
KLUC/Las Vegas Taps John Moug As New Afternoon Drive Host
Donna Gryn Promoted to VP of Marketing at Republic Records
KIIS FM/Los Angeles Announces Artists Performing At Wango Tango Pre-Show Village
In Brief - April 26, 2016
April 25, 2016
Music News
McCartney, Stones, The Who Top New Festival
Quick Hits: Radiohead, Chris Brown, Against Me!, Violent Femmes, Miike Snow
As Expected, Beyoncé Tops Billboard Chart With Lemonade
Quick Hits: Prince, Radio Disney Music Awards, Radiohead, classic rock festival, Red Hot Chili Peppers, Garbage
FMQB Photo Pass: Pearl Jam
Blink-182 Announce Album, Tour With Matt Skiba
Drake Expands Tour, Reveals Tracklist For Views
Quick Hits: Demi Lovato & Joe Jonas, Cash Cash, Whitney Houston, Deftones' Chino Moreno
Quick Hits: Justin Bieber, Lady Gaga & Elton John, Prince, Thrival Festival, B.o.B
Quick Hits: Bumbershoot Festival, Fetty Wap, HARD Summer, Jenny Lewis, Bayside
Prince Returns To The Top Of The Billboard 200
Drake Announces Summer Sixteen Tour, OVO Fest
Quick Hits: Billboard Music Awards, Guns N' Roses, Tegan and Sara, Twin Peaks, Jennifer Hudson, Billy Paul
Beyoncé Releases New Album Lemonade Via Tidal
Tributes Continue To Pour In For Prince
FMQB NOW

Nick Petropoulos
Head of Promotion
Glassnote Music

    Question Of
      The Week

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!