Home > News > 3 More Shareholder Suits Filed Over New Frontier Takeover • Bookmark   • Newsletters   • Register Search Options

NEWS STORY

3 More Shareholder Suits Filed Over New Frontier Takeover

3 More Shareholder Suits Filed Over New Frontier Takeover
Get XBIZ News
Nov 13, 2012 11:30 AM PST    Text size: 

BOULDER, Colo. — Three additional shareholder suits have been filed against New Frontier Media and LFP Broadcasting over the planned $33 million takeover of the adult transactional TV service.

Last week, XBIZ reported that one plaintiff, Craig Telke, launched a putative shareholder suit at federal court in Denver alleging that the acquisition of New Frontier Media by LFP Broadcasting is "grossly inadequate."

Telke's suit asks for an injunction over the proposed deal or rescinding it if the deal is consummated by its scheduled closing date of Nov. 27, as well as damages and attorneys fees. The suit seeks class-action status.

The three additional suits — two filed at Boulder County District Court and one at Denver County District Court — were filed by shareholder plaintiffs Elwood White, Dennis Palkon and Gopal Chakravarthy, both making the same allegations in their cases as Telke's suit and ask for class-action status. They also made the same injunctive demands.

Among the allegations in all four suits, New Frontier Media's board is alleged to have breached its fiduciary duties in connection with the LFP Broadcasting offer.

Last month, New Frontier Media announced that TV service had signed a definitive agreement to be acquired by LFP Broadcasting for $2.02 per common share in cash up front, or approximately $33 million, plus a contingent cash payment right for each common share.

Today, in a response to the three suits, New Frontier Media CFO Grant Williams said in a filing with regulators that the Boulder, Colo.-based company believes the suits lack merit and intend to contest them vigorously.

More ways to get XBIZ News:  RSS Feeds  |  E-Newsletters  |  Desktop Widget  |  Mobile
Looking for porn star news and behind-the-scene videos? Check out XFANZ.com !

BUSINESS ANALYSIS

Pleasure Product Distributors Offer Retail Advice for 2017

In 2017, the pleasure products sector is both digital and physical. Pleasure products are sold and promoted online, but they are also sold and promoted in brick-and-mortar stores — and for vibrators,... More »

Sex Toy Manufacturers Talk Retailer, Distributor Support

The pleasure products industry, at its best, is a well-oiled machine consisting of manufacturers, distributors and retailers. Distributors make sure that products get from Point A to Point B, while retailers... More »

Pleasure Product E-commerce Experts Discuss Latest Trends

Adult mail order is a concept that has existed for many years. Phil Harvey famously operated a groundbreaking mail order business for adult products during the 1970s. But e-commerce has expanded the concept... More »
XBIZ NEWSLETTERS
Stay informed of the latest industry developments. Get XBIZ newsletters delivered to your inbox. Subscribe today!
Enter email address:

* To manage existing subscriptions click here.






POPULAR PRODUCTS & SERVICES
Submit your press release to
multiple news outlets with 1 click.
Subscribe to RSS news feeds or
add free content to your website.
Access XBIZ news and articles
with your mobile device.
Access the latest issues of the industry's leading trade publications in digital form. View online or download for offline viewing.

UPCOMING EVENTS

The European Summit

Mar 04 - Mar 07
Barcelona-Sitges, Spain

The TEA Show

Mar 05 - Mar 06
Hollywood, CA

Phoenix Forum 2017

Mar 23 - Mar 26
Tempe, Arizona

EXXXOTICA Denver

Mar 31 - Apr 02
Denver, CO.
Everyday thousands of business professionals browse XBIZ's industry directory for quality products and services. Not listed yet? Your company could be losing potential new business. Submit your company today!
Use XBIZ RSS feeds to stay informed of the latest industry developments or as a content syndication tool for your website!