Communications & Media & Entertainment - Regulatory and Legal Developments
| DIRECTV settling shareholder suit over Liberty deal |  |
November 06, 2009 4:55 PM ET
By Sarah Barry James
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As DIRECTV Group Inc. moves closer toward completing its planned merger with certain Liberty Media Corp. assets, the satellite operator is also looking to settle a shareholder lawsuit that was filed in relation to the deal. DIRECTV said in a Form 10-Q filed Nov. 6 that in mid-October, it entered into a stipulation and agreement of compromise, settlement and release to end four stockholder complaints that had been consolidated into one suit. The complaints alleged, among other things, that members of the DIRECTV board of directors breached their fiduciary duties in approving the merger agreement. The settlement already received preliminary approval from the Delaware Chancery Court, and the court scheduled a Nov. 25 hearing for final approval. Liberty Media and DIRECTV, meanwhile, have both scheduled special meetings for Nov. 19 during which stockholders will vote on the merger. If it is approved and other conditions are met, the merger is expected to close shortly after the stockholder meetings. The deal will combine the assets of the satellite company with a majority of the assets and liabilities of Liberty Entertainment Group, forming a new company, Liberty Entertainment Inc., which will also hold Liberty Media's interests in networks and other content assets. |
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