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Legal
Warner settles with complaining shareholders
By CMU Editorial | Published on Tuesday 21 June 2011
Warner Music has reached an out of court settlement with two of its shareholders who claimed that the music firm’s board failed in their fiduciary responsibilities by backing the sale of the company to Len Blavatnik’s Access Industries.
As previously reported, in separate lawsuits, Barbara A Varipapa and Derek Cournoyer clamed the board, which included many of the company’s bigger shareholders, did not go through an appropriate process in picking Blavatnik as their preferred bidder, affecting the price minority shareholders got as a result. Both claimants hoped to make their lawsuits class actions.
But the music major has announced that it has signed a memorandum of understanding with representatives for both shareholders which should ensure that their litigation is dismissed once Blavatnik’s takeover is completed. Both shareholders should benefit financially from the agreements, though the actual terms of settlement are seemingly still to be agreed.
