IBJNews

Emmis sues ex-director, alleges he leaked information

Back to TopCommentsE-mailPrintBookmark and Share

Indianapolis-based Emmis Communications Corp. sued a former board member Friday, claiming he leaked information that resulted in a major holder of preferred stock dropping plans to resell those shares back to the company.

The suit alleges that Joseph R. Siegelbaum told Alden Capital Group about a confidential Emmis board meeting called for Oct. 25 to approve an offer by Alden to sell its preferred stock to the media company for $15 a share—a deal Alden said was good for seven days.

The deal included settlement of an ongoing legal battle between Emmis and Alden. The battle stems from New York-based Alden's decision a year ago to back out of a financing deal that would have taken Emmis private.

Hours after the board was alerted Oct. 24 about the following day's conference call, Alden contacted Emmis counsel to cancel the offer, Emmis claims.

Siegelbaum said during the Oct. 25 conference call that he informed Alden of the meeting, and then left the call, the suit says. Siegelbaum, who joined the board July 13, resigned Nov. 15.

It's not clear from the suit why Emmis believes Siegelbaum's disclosure of the meeting caused Alden to back out. Emmis would not comment further.

During the call, Emmis directors approved outside financing to repurchase as much as $35 million in preferred stock from Alden and other shareholders. Emmis said in a Nov. 14 regulatory filing that it had spent $11.7 million on repurchases as of that date.

Siegelbaum could not be reached immediately for comment.

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
ADVERTISEMENT