Thursday, September 1, 2005
Intermix Faces Class Action Lawsuit
Los Angeles-based Intermix Media is facing a class action lawsuit by its shareholders in its upcoming acquisition by News Corporation. Class action law firm Kreindler & Kreindler LLP has filed a class action suits said that alleges that current directors, officers, and controlling shareholders of Intermix designed a sale to News Corporation at the expense of the company and its shareholders. The suit was filed in the Superior Court of the State of California for the County of Los Angeles. The lawsuit also alleges that the sale of Intermix was at an inadequate and unfair price, that defendants failed to maximize shareholder value, and that the company failed to foster a fair auction of the company to the highest bidder. The suit also said that Intermix undervalued its MySpace.com assets in the deal. Kreindler is known for its role in securing a $2.7B settlement from Libya over its role in the Pan Am Flight 103/Lockerbie bombing, as well as involvement in a number of other high profile liability cases.