Judge Sarah Evans Barker of the United States District Court, Southern District of Indiana, has ruled in favor of Emmis Communications in a suit filed by dissident preferred shareholders.
“We were confident in our position, and the federal court has confirmed it,” said Jeff Smulyan, President and CEO of Emmis Communications. The ongoing dispute in Federal Court had targeted Emmis, its directors, CEO Jeff Smulyan and other executives over plans to strip the preferred stock of its dividend payments.
They’re were also sued by Emmis in an Indiana state court, where the company seeked a declaratory ruling that it is legal under Indiana securities law for Emmis to exercise the voting rights of preferred shares not quite retired in full value swaps and of 400,000 new preferred shares allocated to an employee bonus program. In 2012, an injunction against Emmis by the shareholder group was turned down in court.
Here is a copy of the judge’s ruling. Get your reading glasses, because this is a long one: