DES MOINES, Iowa (AP) — A federal lawsuit says Des Moines-based Meredith Corp.’s executives and majority shareholders had conflicts of interest in negotiating a $2.4 billion sale to Virginia-based Media General and will unfairly benefit.
The Des Moines Register reports that the lawsuit filed earlier this month says Meredith’s acquisition “was approved by a majority-interested board who stood to profit from windfall financial benefits . as well as lucrative post-deal employment positions.”
Meredith spokesman Art Slusark says the deal faces votes by owners of common shares and by shareholders who primarily are Meredith family members. Slusark says Meredith considers the lawsuit frivolous and also says such lawsuits are common during acquisition deals.
A class-action status is being sought for the lawsuit, which seeks to stop the sale or seeks damages if it goes through.
