The sale of the century is already under threat from lawsuits, as two separate legal actions are announced that see Marvel shareholders calling foul about the Disney buyout.
The first lawsuit came within a day of the announcement of the sale, as shareholder Christine Vlatos filed a complaint in a Wilmington court seeking not only a court order to stop the sale, but also “unspecified damages” as a result of the announcement. It’s a case that experts dismiss as unlikely to come to anything. But the same may not be true of a similar class action suit against the company:
According to the complaint the plaintiff alleges breaches of fiduciary duty and other violations of state law by the Board of Directors of Marvel Entertainment, Inc. (Public, NYSE:MVL) arising out of their attempt to sell Marvel Entertainment to Walt Disney Company. According to Marvel Entertainment the Walt Disney Company (NYSE:DIS) has agreed to acquire Marvel Entertainment, Inc. (NYSE:MVL) in a stock and cash transaction. Under the terms of the agreement and based on the closing price of Walt Disney Company (NYSE:DIS) on August 28, 2009, Marvel shareholders (NYSE:MVL) would receive a total of $30 per share (NYSE:MVL) in cash plus approximately 0.745 Disney shares for each Marvel share they own. According to Marvel Entertainment based on the closing price of Disney stock (NYSE:DIS) on Friday, August 28, the transaction value is $50 per MVL share or approximately $4 billion. But according to a previous investigation by a law firm “the transaction appear[ed] to be unfair” to current investors of Marvel Entertainment, Inc. (Public, NYSE:MVL) “by failing to conduct an open and fair auction process for the Company in order to maximize shareholder value”.
The announcement invites other Marvel shareholders to come forward to join the lawsuit.