Citadel Broadcasting had already reported that two shareholder lawsuits had been filed in Nevada claiming that the deal to sell the company to Cumulus Media for $37 per share shortchanged shareholders. Now another has been filed in Delaware.
Despite a bidding battle between Cumulus, which first offered only $31 per share, and Entercom, which was outbid by the $37 winning offer, several class action law firms were trolling for clients after the deal was announced. While most of Citadel’s post-Chapter 11 stock is held by vulture capital firms anxious to cash out, the lawyers apparently did manage to find a few shareholders willing to put their names on lawsuits.
The AP reported that the third lawsuit was filed Friday in Delaware, where many major companies are incorporated. Citadel is not among them, though. Nor is Cumulus, which is a Georgia corporation.
RBR-TVBR observation: Note to the clients of the latest attorneys to file suit. You might want to find lawyers who can figure out that Citadel is incorporated in Nevada, not Delaware.