Intermix Media faces a class action suit by shareholders over the...
Intermix Media faces a class action suit by shareholders over the firm’s recently announced acquisition by News Corp. Kreindler & Kreindler Wed. filed the complaint against the company that owns popular online community MySpace.com in Cal. Superior Court. The…
Sign up for a free preview to unlock the rest of this article
Export Compliance Daily combines U.S. export control news, foreign border import regulation and policy developments into a single daily information service that reliably informs its trade professional readers about important current issues affecting their operations.
suit alleges the firm’s executives and controlling shareholders designed the buyout at Intermix investors’ expense, claiming Intermix was put up for sale at a “glaringly inadequate and unfair price that virtually guaranteed Intermix shareholders would receive far less than optimal value for their shares.” The deal with News Corp. “severely limits communications with any 3rd party interested in submitting a competing proposal” and sets a $25 million termination fee if the News Corp. agreement is abandoned, shareholders’ attorneys said. The suit seeks preliminary and permanent injunctive relief and to recover damages. In an an 8-K filed Thurs. with the SEC, Intermix challenged the suit’s merits, saying the company plans a vigorous defense. Intermix also scheduled a special shareholder meeting for Sept. 28 to vote on the News Corp. buyout.