Experienced Kansas City Construction Law Firm
Call Our Team Today
1-800-523-5786

Media company accused of breaching fiduciary duty

Corporate board members and other officials in Colorado and throughout the United States have a responsibility, or a fiduciary duty, to act in the best interests of others; in this case, they specifically must act to preserve the value of the corporation. When corporate officials engage in insider trading or other deals that could be detrimental to the value of the company as a whole, this can be a breach of fiduciary duty to other shareholders, even when some shareholders may benefit from the arrangement.

A lawsuit that has been filed against Media News Group, the owner of 50 newspapers throughout the United States, and its major owner, Alden Global Capital, a New York hedge fund, alleges that parties have engaged in mismanagement and potential breaches of fiduciary duty. The case, filed by a minority shareholder in the corporation, seeks the disclosure of financial records and investment information. The lawsuit was filed by Solus, an investment company that owns 24 percent of the voting shares of stock in the media corporation. Alden, the majority shareholder, owns 50.1 percent of the outstanding shares in the corporation.

The lawsuit claims that various actions have been taken to benefit Alden at the potential expense of Media News Group, including the creation of a holding company in 2016 and the revision of a shareholder agreement in 2017. The suit alleges that investments undertaken by the media company have benefited Alden, but not MNG and its stockholders.

Corporate officials have a responsibility to maximize value and return for all of their shareholders, not only majority owners. If corporate funds have been directed to low-performing investments in order to aid the majority shareholder, this could be a breach of fiduciary duty. People who are facing mismanagement or a lack of disclosure from their own investments may be able to work with a business litigation attorney to pursue a claim.

No Comments

Leave a comment
Comment Information

Our condo association was faced with monumental construction issues thanks to the original developer of our complex. We were cash poor and in no position to get legal representation without a contingency fee arrangement. Luckily for us, Scott Long and Burke Robinson were willing to take us on as clients. Their work ethic, professionalism and knowledge of condominium construction served our association very well. Any association would be well served in hiring these gentlemen to represent them.

Board of Directors - Plaza Gardens on the Lake Condominium Owners’ Association Lake of the Ozarks, MO

Read More Testimonials

Let Us Help You

Contact our Kansas City Construction Law Firm by calling 1-800-523-5786 or by completing this contact form.

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy