Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, has launched an investigation into whether the directors and officers of Sinclair Broadcast Group, Inc. (NASDAQ: SBGI) violated their fiduciary duties in connection with Sinclair’s failed acquisition of Tribune Media.
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In 2018, Sinclair announced that it planned to acquire Tribune to bolster its broadcasting footprint. Had the acquisition gone through, Sinclair stations would cover a majority of the country.
The proposed Sinclair/Tribune deal — valued at $3.9 billion — was scrutinized at the time by Federal Communications Commission chair Ajit Pai, and the agency formally referred the proposed acquisition to an administrative judge hearing. They also called into question whether some of Sinclair’s planned divestments in the deal were a “sham.” Tribune Media eventually terminated the merger agreement and even sought monetary damages from Sinclair.
On Wednesday, May 6, 2020, the FCC announced in a press release that, following years of regulatory proceedings, Sinclair agreed to pay a $48 million fine, the largest in FCC history. The FCC’s release added that Sinclair would “abide by a strict compliance plan in order to close three open investigations.” In the news release, the FCC also said that Sinclair admitted to violating the FCC’s sponsorship identification rules. FCC Chairman Ajit Pai added that Sinclair’s conduct during its attempt to merge with Tribune was “completely unacceptable.”
Bragar Eagel & Squire is concerned that Sinclair’s directors and officers breached their fiduciary duties and also caused the Company to violate federal law in connection with the regulatory approval process for the failed merger. As a result of the potential misconduct, Sinclair might have suffered actionable harm.
If you are a long-term stockholder of Sinclair shares, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Melissa Fortunato or Marion Passmore by email at investigations@bespc.com, telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York and California. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
View source version on businesswire.com: https://www.businesswire.com/news/home/20200507005925/en/
Contacts:
Melissa Fortunato, Esq.
Marion Passmore, Esq.
investigations@bespc.com
www.bespc.com
