A class action has been filed against Fox Entertainment Group, Inc. (NYSE:FOX), a entertainment company and certain of its officers and directors by stockholders who purchased the company's common stock between January 10, 2005, and the date that News Corp. consummates its purchase of Fox. The action claims that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. The stockholders seek to recover compensatory damages for the loss of value of their stock.According to a press release dated February 25, 2005, on February 8, 2005, a class action lawsuit was filed on behalf of purchasers of the securities of Fox Entertainment Group, Inc., seeking remedies under the Securities Exchange Act of 1934. The action is pending against the Company, News Corporation, and certain of Fox and News Corporation's officers and directors. Fox Entertainment Group, Inc. is a multi-faceted entertainment company with operations in four business segments, including Filmed Entertainment, Television Stations, Television Broadcast Network and Cable Network Programming.
The complaint alleges that throughout the Class Period, Defendants violated Section 14(e) of the Exchange Act. The complaint states that the registration statement that Defendant News Corp. has filed with the Securities and Exchange Commission in connection with its offer to acquire the remaining Fox Class A shares that it does not already own (the "Offer") is materially misleading and incomplete by its omission of the following information: (a) the nature and extent of the conflicts of interest suffered by the members of the special committee, (b) how News Corp. arrived at the exchange ratio in the Offer and its determination that the Offer represents "full and fair value for the Fox shareholders," (c) the analyses performed by News Corp.'s financial advisors and the information relied upon by those advisors in rendering any fairness opinions concerning the offer, (d) financial projections (and the assumptions underlying those projections) for News Corp. prepared by News Corp.'s management, and (e) financial projections (and the assumptions underlying those projections)for Fox prepared by News Corp. and/or Fox management.
Several similar class action lawsuits were filed and are currently pending in the Court of Chancery in the State of Delaware.
If you bought Fox Entertainment Group, Inc. securities between January 10, 2005, and the date that News Corp. consummates its purchase of Fox inclusive, and would like to obtain information about the lawsuit, then you are invited to call (866) 467-1400 to speak with an attorney.