Wolf Popper LLP, together with the other Co-Lead Counsel and Class Counsel to former stockholders of sports media company MSG Networks, Inc. (former NYSE ticker: “MSGN”), has reached a settlement which, if approved, would resolve litigation in the Delaware Court of Chancery for $48,500,000.00. In July 2021, MSGN merged into an affiliated entity, Madison Square Garden Entertainment Corp. (“MSGE”). Under the terms of the merger agreement, stockholders received 0.172 shares of MSGE common stock for each share of MSGN common stock they held.
The plaintiffs in the consolidated action 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 grossly 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.
The settlement, which was reached in principle less than three weeks before trial, follows 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.
Vice Chancellor Lori Will has set a hearing for August 14, 2023 at 1:30 p.m. to determine whether to approve the settlement. Additional information regarding the proposed settlement may be found in the Notice of Pendency, and at www.MSGNStockholderLitigation.com. .
The case is In re: MSG Networks Inc. Stockholders Class Action Litigation, 2021-0575-LWW, in the Court of Chancery of the State of Delaware.