Cases & Investigations
MSG Networks Inc. Stockholder Litigation

In this action, Wolf Popper LLP together with other Co-Lead Counsel, represented former stockholders of sports media company MSG Networks, Inc. (former NYSE ticker: “MSGN”), whose shares were extinguished in a 2021 merger with Madison Square Garden Entertainment Corp. (“MSGE”).  Under the terms of the merger, stockholders received 0.172 shares of MSGE common stock for each share of MSGN common stock they held.  The stockholders alleged, among other things, that members of the Dolan family, led by MSGN Executive Chairman and MSGE CEO James L. Dolan, violated their fiduciary duties when they used their control of both companies and their respective boards of directors to effectuate a merger that provided inadequate consideration to MSGN stockholders.  The plaintiffs further alleged that the MSGN directors who recommended the merger labored under disabling conflicts of interests and were beholden to the Dolans.
 
On August 14, 2023, the Delaware Court of Chancery approved a $48,500,000.00 cash settlement resolving this litigation.   The settlement, which was reached in principle less than three weeks before trial, followed the exchange of over 1.1 million pages of documents, 43 fact depositions, eight expert reports, four expert depositions, and various motions filed by the parties regarding discovery and pretrial matters.  The litigation also received considerable news coverage due to MSGE’s decision to ban all plaintiffs’ counsel from entering its venues, including Madison Square Garden, Radio City Music Hall, and the Beacon Theatre, which drew the scrutiny of regulators and elected officials. 

In approving the settlement, Vice Chancellor Lori W. Will stated that the settlement amount, which provided stockholders with an approximate 8.8% increase to the cash value of the merger consideration, constituted a “great” result and that the resolution was “in all respects, fair, reasonable, and adequate to the Class” given the risks of continued litigation.   Vice Chancellor Will further stated; “Congratulations on this great result.  You should be very proud of the settlement here....Well done.”
 
On July 26, 2024, Vice Chancellor Will granted the plaintiffs’ unopposed motion for a class distribution order.  The court-appointed settlement administrator thereafter distributed settlement payments to class members.
 
The now-resolved case is In re: MSG Networks Inc. Stockholders Class Action Litigation, 2021-0575-LWW, in the Court of Chancery of the State of Delaware.