Shareholder lawsuit for AT&T/DirecTV deal
May 30, 2014
By Chris Forrester
AT&T and DirecTV have been hit with a shareholder’s Class Action lawsuit over their planned $48 billion link-up.
The action, commenced May 29th, in Los Angeles Superior Court cites AT&T, DirecTV and many of its senior executives.
In essence the writ argues that the price is too low, and “DirecTV’s recent financial performance is indicative of a company on the rise with growth potential yet to be recognised,” the suit reads. It also takes the board members to task. “In approving the Proposed Acquisition [… ] the Individual Defendants have breached their fiduciary duties of loyalty, good faith, due care and disclosure.” The action also argues that DirecTV’s executives are considering themselves ahead of public shareholders.
The plaintiffs have requested a jury trial.
The Court documents can be read here.