Tribune Media, Sinclair Broadcast Group Hit with Lawsuit Over Merger Proposal

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Tribune Media Company, its board of directors, Sinclair Broadcast Group, Inc., and Samson Merger Sub Inc. are the defendants in a proposed class action lawsuit that claims they failed to disclose necessary information regarding a proposed merger between Tribune and Sinclair. In particular, the suit accuses the defendants of withholding the details of the two companies’ financial projections and the processes used in valuation analyses performed by their financial advisors. Additionally, the registration statement allegedly omits information about potential conflicts of interest concerning Tribune’s board of directors and one of its financial advisors.

The plaintiff further claims that stockholders and entitled to “an accurate description” of the background of the deal, including processes used by the board to arrive at their decision to recommend the merger. Without this information, the plaintiff argues, stockholders cannot determine whether they support the deal.