Sinclair Broadcasting Investor Lawsuit
Audet & Partners, LLP is investigating claims on behalf of Sinclair Broadcasting investors against Sinclair Broadcasting Group’s executives and Board of Directors (the “Board”) in connection with Sinclair’s failed merger with the Tribune Media Company. The merger agreement required that Sinclair divest itself of certain assets in order to facilitate Federal Communications Commission approval of the Merger. However, according to recent allegations, rather than truly divest itself of these assets, the Board tried to evade media concentration rules by attempting to transfer certain Company assets to entities affiliated with Sinclair’s controlling family, the Smith Family. Indeed, the FCC has concluded that “there is a substantial and material question of fact as to whether Sinclair affirmatively misrepresented or omitted material facts” regarding the Company’s supposed efforts at divesture and questions whether such efforts were nothing more than “sham transactions.”
This attempt by the Smith Family, which controls Sinclair, to skirt the requirements of the Merger Agreement has caused Sinclair harm. First, this misconduct has resulted in the FCC effectively killing the Merger. Moreover, in addition to losing the revenue and other benefits Sinclair would have received through the Merger, Sinclair is now facing as much as $1 billion in potential liability from a lawsuit filed by the Tribune for breach of the Merger Agreement, as well as other litigation.
If you are a current Sinclair shareholder, you are urged to complete and submit the confidential inquiry form on the right side of this page for a free case evaluation from one of our class action attorneys.