Tribune Media Company (Nasdaq: TRCO)
A class action has been commenced in the United States District Court for the Northern District of Illinois on behalf of all persons or entities who purchased or otherwise acquired Tribune Media Company (Nasdaq: TRCO)securities between November 29, 2017 to July 16, 2018, (the “Class Period”).
The complaint alleges that during the Class Period, defendants made materially false and misleading statements and/or failed to disclose material adverse facts concerning the prospects for the Merger and the conduct of Sinclair during the Merger process. Specifically, the complaint alleges that while defendants frequently discussed the regulatory steps necessary to complete the Merger in public statements and presentations, including statements regarding Sinclair’s purported agreement to take certain actions in order to secure regulatory approval, defendants misstated or omitted certain facts, including that Sinclair was refusing to divest itself of television stations in certain markets that it had previously agreed to sell, and which was necessary in order to secure regulatory approval for the Merger, and Sinclair was taking the position that it was not legally or contractually obligated to complete the identified divestitures to ensure regulatory approval. As a result of defendants’ false and misleading statements and/or omissions, the price of Tribune common stock was artificially inflated during the Class Period to more than $43 per share.
Then on July 16, 2018, the Chairman of the Federal Communications Commission (the “FCC”) issued a statement expressing “serious concerns” about the Merger, stating that “certain station divestitures that have been proposed to the FCC would allow Sinclair to control those stations in practice, even if not in name, in violation of the law.” In other words, Sinclair had proposed a plan to the FCC, which had been repeatedly rejected, under which Sinclair would still control stations that it was otherwise required to sell to comply with FCC regulations. On this news, the price of Tribune stock fell $6.44 per share, or more than 16%.
Subsequently, on August 9, 2018, Tribune announced that it had terminated the merger agreement with Sinclair and that it was suing Sinclair for $1 billion for breach of contract.
If you are a current shareholder and/or purchased stock during the period between November 29, 2017 to July 16, 2018, and would like to discuss your options of exercising your rights as a shareholder, please contact us.
Please submit the following information so we can determine if you qualify for the suit. If you don't know all the specific details, partial information is also acceptable.