The Starz Securities Lawsuit alleges breach of fiduciary duty. It alleges that Mr. Malone and Mr. Bennett aided and abetted the defendants in committing these breaches. Amazon also joined the suit, and MGM admitted to a breach. If you want to learn more about the Starz Securities Lawsuit, read this article. It provides a summary of the allegations and how the case might be resolved.
Starz Securities lawsuit alleges breach of fiduciary duty
In the Starz Securities lawsuit, stockholders are alleging that the company’s board of directors, Lions Gate, Merger Sub, and Dr. Malone breached their fiduciary duties. The lawsuit is related to the Starz merger and alleged violations of Starz’s charter of good governance. The lawsuit is filed in Delaware and may be the result of a merger or acquisition.
The settlement for the Starz Securities lawsuit alleges breach of fiducial duties and seeks nearly full recovery for former shareholders. The settlement includes the cost of the merger, a reduction in the purchase price, and other benefits. In the end, the case settled for $92.5 million, with the plaintiffs receiving a cash payment for their losses. The Starz Securities lawsuit was filed against the company after its sale to Lions Gate Entertainment Corp. for an unjust price.
Alleges Lionsgate, Dr. Malone, and Mr. Bennett aided and abetted such breaches
A new lawsuit filed against the directors of Starz Entertainment LLC has alleged that the company and its controlling stockholders violated the company’s fiduciary duty by failing to disclose material information in the Merger Sub and the amended joint prospectus. The lawsuit also alleges that Lionsgate, Dr. Malone, and Mr. Bennett violated their duties by failing to notify stockholders of the merger’s proposed acquisition of Starz.
The plaintiffs in the Starz Securities Lawsuit have hired the law firm Analysis Group, which is being retained by Lionsgate and Dr. Malone to evaluate the case. Their report stated that the merger was unsuitable. The complaint also alleges that Mr. Malone, Dr. Malone, and Mr. Bennett aided and abetted these breaches by failing to disclose that they had improperly converted Starz shares into non-voting Lionsgate shares.
Alleges Amazon joined the suit
The Starz Securities Lawsuit alleges that Amazon has joined the case against the network and has contributed millions of dollars in settlement funds. The company was purchased by Lionsgate for $4.4 billion in 2016. The claimants alleged that they were unfairly converted to nonvoting Lionsgate shares and sought an appraisal of their shares. Affiliate James Trautman opined on the broad industry trends and how these changes spurred merger activity. The firm also included Gaurav Jetley, Carletta Wong, and Na Dawson.
According to the complaint, the company was deprived of profits from the sales of its titles. The company is not able to charge Starz with any infringement because it did not know about the infringements until August 2019. Accordingly, the Court denied MGM’s motion to dismiss the lawsuit. Starz is also appealing the decision, claiming that Amazon has joined the suit. The company has argued that the lawsuit is frivolous and unjust.
Alleges MGM admitted to a breach
In the Starz Securities Lawsuit against MGM, the network claims that it was deprived of profit and diminished reputation, and goodwill as a result of MGM’s license agreements. The network is represented by Cravath attorney Evan Chesler. The company alleges breaches of contract, breach of good faith, and copyright infringement. The company also requests that an order be issued preventing MGM from infringing upon its intellectual property. The network is owned by Lionsgate, and its stock has been the subject of many rumors about M&A and spin-off transactions.
The alleged breach of exclusivity agreements was discovered by Starz after an employee noticed Bill & Ted’s Excellent Adventure showing up on Amazon Prime. The movie was supposed to be exclusive to Starz. MGM eventually admitted that it breached the agreement by accidentally allowing 200 films to be viewed on rival platforms. Some of those films were also licensed to MGM’s TV network.
Alleges Amazon subpoenaed Starz
The Wall Street Journal report that Amazon has violated securities law and was allegedly complicit in the infringement of Starz Securities’ intellectual property rights has sent shockwaves through the tech world, and Congress is threatening to subpoena the founder of Amazon, Jeff Bezos. The Wall Street Journal article contradicts statements made by Amazon general counsel Nate Sutton, including his statement that the company does not collect or use any information from third-party sellers.