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September 07, 2018
Brattle Contributes to Shareholder Settlement in Starz Merger with Lionsgate

On August 24, 2018, Lionsgate reached a tentative $92.5 million settlement with Starz Series A stockholders over allegations of breaches of fiduciary duty in the 2016 Starz-Lionsgate merger. The suit claimed that Starz’s controlling shareholder, John C. Malone, orchestrated the merger to benefit himself at the expense of the Series A stockholders.

Starz had two classes of stock – Series A with one vote per share and Series B with 10 votes per share. Mr. Malone was Starz’s controlling shareholder due to his large holdings of Starz Series B stock. He also owned a significant stake in Lionsgate where he was also a board member.

Brattle Expert Benjamin Sacks opined in reports and testified at deposition on behalf of the Series A stockholders regarding the value of Starz and Mr. Malone’s financial incentives.

The Brattle team was led by Principal Benjamin Sacks and Associate Shastri Sandy.