USA Shareholders Sue Over Vivendi Deal
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Two USA Networks shareholders are suing to stop the $10.3-billion sale of USA’s entertainment businesses to Vivendi Universal.
Ruth and Abraham Ringel say USA’s board breached its fiduciary duty by failing to seek higher bids for the company, according to a filing in the Delaware Court of Chancery. The hope to obtain class-action status for their suit.
The Ringels also allege that the USA board and its chairman, Barry Diller, “usurped” a business opportunity belonging to the company and thousands of holders of its 738million shares of common stock.
A USA spokeswoman declined to comment on “pending litigation.”
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Richard Verrier
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