Publishing and Information Services Industry News SampleJun 18, 2002 00:52:56
CROWN MEDIA: DE Court Approves $1.5M Settlement Of Shareholder Suit
FREDERICK, Maryland (SunStream News) -- The Delaware Chancery Court granted preliminary approval to the settlement proposed by Crown Media Holdings, Inc. relating to a consumer class action filed over the Company’s proposal to purchase Crown Meida Library. The suit was commenced in June 2001, as a class action and derivative action and alleged, among other things, that the films transaction was the product of an unfair process designed to advantage Hallmark Cards as the controlling stockholder and that the price being paid to Hallmark Entertainment Distribution was not entirely fair. In June 2001, the Company, Hallmark Cards and the other defendants and the plaintiff entered into a memorandum of understanding stating an agreement in principle on a settlement of the lawsuit concerning the transaction. As of February& 20, 2002, the Company and the other parties to the lawsuit entered into a settlement agreement concerning the lawsuit, with terms contemplated by the memorandum of understanding. The settlement agreement provides, among other things, that: (1) the purchase price of the films transaction will be reduced by 425,000 shares of Class A Common Stock; (2) all claims against the Company and related parties that arise out of the events alleged in the lawsuit will be released; and (3) the Company will pay the fees and disbursements of the plaintiff’s counsel, without interest. At a settlement hearing on April 18, 2002, the court determined, among other things, that: (i) the settlement is fair and reasonable, and in the best interest of a class consisting of all record owners and beneficial owners of the Company’s common stock on any day from November 6, 2000 (the date that the films transaction was publicly announced) to and including September 28, 2001, the effective date of closing the films transaction; (2) the lawsuit be dismissed such that no plaintiff or class member could sue on their claims again; (3) the lawsuit be certified as a class action; and (4) it should grant the request of the plaintiff’s counsel for attorneys fees and reimbursement of expenses of $700,000 in connection with the lawsuit.
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Source: M&A Reporter - Asia Pacific
Publication Date: 2002-06-18
NWS: LAW
COY: CRWN
IND: PUB
GEO: n-us-de
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