A Warner Music Group shareholder has filed a class-action lawsuit against the company, claiming that its chairman and CEO Edgar Bronfman Jr. and its board of directors breached their fiduciary duty by accepting a $3.3 billion bid from Len Blavatnik's Access Industries rather than a higher offer from billionaire brothers Tom and Alec Gores. The suit seeks to block the consummation of the deal with Access and provide damages to the defendants.
Choose Rolling Stone's Cover: The Sheepdogs vs. Lelia Broussard. Vote Now!
The complaint, filed by stockholder Derek Cournoyer, makes a point of noting that Blavatnik was a former member of the WMG board and is a personal friend of Bronfman, insinuating that this was a major factor in the decision to go with Access over the Gores Group.
Cournoyer's class action suit is preceded by a similar action filed against WMG by another shareholder plaintiff in Delaware.
To read the new issue of Rolling Stone online, plus the entire RS archive: Click Here
MUSIC 9 Classic Devo Videos
OLYMPICS 18 Epic Opening Ceremonies
Picks From Around the Web
blog comments powered by Disqus