Sinclair Broadcast settles shareholder lawsuits for $25 million
Sinclair Broadcast Group has reached a $25 million deal to settle shareholder lawsuits stemming from its failed $3.9 billion merger with Tribune Media Co.
The lawsuits alleged breach of fiduciary duties by the Hunt Valley broadcasting company’s officers and directors as they sought approval from regulators to merge with Tribune in 2018.
Tribune pulled out of the merger in August 2018 after the Federal Communications Commission sent the merger for review by an FCC administrative hearing judge. That review was sought in the wake of FCC Commissioner Ajit Pai raising “serious concerns” about the deal being in the public interest.
In the settlement, the company, its board and CEO Chris Ripley agreed their insurers will pay $20.5 million into a settlement fund which will be paid to Sinclair after a deduction for an award of fees and expenses to the plaintiffs’ attorneys. Another $5 million in the settlement fund will pay over a five year period for new corporate governance measures and compliance programs to meet an FCC consent decree.
