{"id":618399,"date":"2023-03-15T21:49:28","date_gmt":"2023-03-16T02:49:28","guid":{"rendered":"https:\/\/news.sellorbuyhomefast.com\/index.php\/2023\/03\/15\/madison-square-garden-entertainments-board-reaches-85m-deal-to-settle-shareholder-suit\/"},"modified":"2023-03-15T21:49:28","modified_gmt":"2023-03-16T02:49:28","slug":"madison-square-garden-entertainments-board-reaches-85m-deal-to-settle-shareholder-suit","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2023\/03\/15\/madison-square-garden-entertainments-board-reaches-85m-deal-to-settle-shareholder-suit\/","title":{"rendered":"Madison Square Garden Entertainment\u2019s Board Reaches $85M Deal to Settle Shareholder Suit"},"content":{"rendered":"

Entertainment <\/p>\n

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\n\tMadison Square Garden<\/a> Entertainment\u2019s board has agreed to settle for $85 million a shareholder suit accusing it of failing to protect stockholders\u2019 interests when it merged with MSG Networks.<\/p>\n

\n\tThe deal will be covered by the board\u2019s insurers, according to a securities form filed on Wednesday. There was no admission of wrongdoing.<\/p>\n

\n\tThe suit filed in 2021 accused the Dolan family of engineering the merger, \u201coverpaying for MSGN and diluting MSGE\u2019s public stockholders,\u201d to further their own interests and enhance their voting stake. Shareholders alleged that the deal was meant to fund, among other projects, the $1.9 billion MSG Sphere project in Las Vegas<\/a>, which is set to open this year. They also claimed that the deal was consummated at an unfair price because it took advantage of the pandemic\u2019s impact on MSGE\u2019s business, which primarily consists of hosting live events. Three suits were filed in Delaware Chancery court and later consolidated.<\/p>\n

\n\tThe merger was completed<\/a> in March 2021 in an all-stock transaction. <\/p>\n

\n\tThe Dolan family controls over 70 percent of the voting power of MSGE. The company\u2019s board, led by chief executive James Dolan, violated their fiduciary duties when they leveraged their control of both companies to complete a merger that led to MSGE\u2019s stock falling by nearly $10 a share after it was announced, according to the complaint, which was filed a month after a Delaware judge blocked efforts from both companies\u2019 investors to block a vote to approve the deal. In that case, Chancellor Kathaleen McCormick found that the Dolan family didn\u2019t violate a state law barring a shareholder with a voting stake of at least 15 percent from pursuing an acquisition within three years of when the equity was acquired.<\/p>\n

\n\tThe deal has been agreed to by both sides and has been documented in a term sheet. A formal stipulation of settlement hasn\u2019t been filed.<\/p>\n

\n\t\u201cThe parties to the Litigation reached an agreement in principle to settle the Litigation on the terms and conditions set forth in a binding term sheet, which will be incorporated into a long-form settlement agreement,\u201d states the securities filing. \u201cThe Term Sheet provides for, among other things, the final dismissal of the Litigation in exchange for a settlement payment to MSG Entertainment of $85\u00a0million, subject to customary reduction for attorneys\u2019 fees and expenses, in an amount to be determined by the Court.\u201d<\/p>\n

\n\tIn a statement, a MSGE spokesperson said \u201cAs described in the 8-K, this is a settlement that involves payment to the company of $85M from the insurers, and the board agreed to settle these claims without admitting any liability.\u201d<\/p>\n

\n\tJoel Fleming, representing the shareholders, declined to comment.<\/p>\n<\/p><\/div>\n

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Read More<\/a>
\n Winston Cho<\/p>\n","protected":false},"excerpt":{"rendered":"

Logo text Madison Square Garden Entertainment\u2019s board has agreed to settle for $85 million a shareholder suit accusing it of failing to protect stockholders\u2019 interests when it merged with MSG Networks. The deal will be covered by the board\u2019s insurers, according to a securities form filed on Wednesday. There was no admission of wrongdoing. The<\/p>\n","protected":false},"author":1,"featured_media":618400,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1798,22259,1202],"tags":[44235,9962],"class_list":{"0":"post-618399","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-entertainment","8":"category-madison","9":"category-square","10":"tag-madison","11":"tag-square"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/618399","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=618399"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/618399\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/618400"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=618399"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=618399"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=618399"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}