Entertainment

John Malone, Chartered Director hits $87.5 million payout – The Hollywood Reporter

A seven-year lawsuit alleging billionaire John Malone was illegally compensated through a side agreement in Charter’s 2015 acquisition of Time Warner Cable settled for $87.5 million. .

A proposed settlement filed Friday in a Delaware court notes that the money will be paid to Charter. Malone and the other defendants named in the lawsuit do not admit wrongdoing.

In 2015, a Charter investor sued Malone and other directors on the company’s board for alleged misconduct in the $78.7 billion merger with Time Warner Cable. According to the complaint, Malone’s Liberty Broadband forced the deal to be structured in favor of his company and to the detriment of Charter.

At the time, Liberty Broadband was Charter’s largest shareholder, with a 26% stake. The deal gives Malone the right to review all of the shares Liberty holds in Time Warner Cable. Other investors have a mix of stocks and cash.

The lawsuit also alleges a breach of trust related to an additional transaction that gives Liberty Broadband a 6% voting authorization.

While the attorneys representing the investor claim that they have a strong case, they say the settlement is “fair, reasonable, complete and in the best interest of Charter and its shareholders.” its publicity” because of “the uncertain outcome and substantial risk of further litigation,” among other factors.

The defendants say they settled to “avoid the burden, cost, disruption and distraction of further litigation.” It continues to deny the allegations in the complaint.

In May, a judge took the case to trial after the case survived the summary ruling.

Joel Fleming, the attorney representing the plaintiff, declined to comment. Charter did not immediately respond to requests for comment.




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