RM LAW, P.C. announces that a class action lawsuit has been filed on behalf of all persons or entities that purchased Sinclair Broadcast Group, Inc. (“Sinclair” or the “Company”) (NASDAQ: SBGI) securities between February 22, 2017 and July 19, 2018, inclusive (the “Class Period”).
Sinclair shareholders may, no later than October 8, 2018, move the Court for appointment as a lead plaintiff of the Class. If you purchased shares of Sinclair and would like to learn more about these claims or if you wish to discuss these matters and have any questions concerning this announcement or your rights, contact Richard A. Maniskas, Esquire toll-free at (844) 291-9299 or to sign up online, click here.
Sinclair operates as a television broadcasting company in the United States. It owns or provides various programming, operating, or sales services to television stations.
The Complaint alleges that, throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and its proposed merger with Tribune Media Company (the “Sinclair/Tribune Merger”). Specifically, Defendants allegedly made false and/or misleading statements and/or failed to disclose that: (1) the Sinclair/Tribune Merger was not in compliance with FCC rules and regulations; (2) Sinclair was not using its best efforts to eliminate any impediment to regulatory approval; (3) Sinclair was engaging in non-arm’s length transactions with buyers connected to Sinclair’s controlling shareholders in order to skirt FCC ownership rules; and (iv) that, as a result of the foregoing, Defendant’s public statements were materially false and/or misleading and/or lacked a reasonable basis.
During the Class Period Sinclair announced a proposed $3.9 billion merger with Tribune Media Co. (“Tribune”). The complaint alleges that throughout the Class Period, Sinclair and the other defendants, made materially false and misleading statements assuring investors and the Federal Communications Commission (“FCC” or “Commission”) that it was using its “best efforts” to obtain regulatory approval and close the Tribune deal. Additionally, the Company allegedly said it would sell or divest certain stations as necessary “in order to comply with FCC ownership requirements and antitrust regulations.”
However, according to the complaint, Sinclair engaged in a fraudulent scheme to deceive the FCC and the investing public by creating “sham” transactions with buyers intertwined with the Company and its controlling shareholders, the Smith brothers, in an effort to misleadingly convince regulators that Sinclair’s proposed merger with Tribune was in compliance with FCC ownership regulations.
On July 16, 2018 reports began to emerge that the FCC was designating the Sinclair/Tribune merger proposal for a hearing due to “serious concerns” that “Sinclair’s actions here potentially involve deception.” Following this news, the price of Sinclair shares fell $3.85 per share, or 11.6%, to close at $29.10 per share on July 16, 2018. According to the complaint, Sinclair shares continued to fall over the next two trading days, closing at $27.40 per share on July 18, 2018.
Then, after the markets closed on July 18, 2018, the FCC unanimously voted to send the proposed merger to a hearing. Among other things, the FCC stated that there was “a substantial and material question of fact as to whether Sinclair affirmatively misrepresented or omitted material facts” and whether Sinclair had “attempted to skirt the Commission’s broadcast ownership rules.” Following this news, the price of Sinclair shares fell by $1.10 per share, or 4%, to close at $26.30 per share on July 19, 2018 – a total price decline over four days of more than 20%.
If you are a member of the class, you may, no later than October 8, 2018, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as “lead plaintiff.” Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain RM LAW, P.C. or other counsel of your choice, to serve as your counsel in this action.