MIAMI, June 1, 2015 (GLOBE NEWSWIRE) -- Spanish Broadcasting System, Inc. (the "Company" or "SBS") (Nasdaq:SBSA) today announced the dismissal of Counts I, II and IV of a lawsuit brought by certain preferred stockholders, which alleged that SBS had violated the Series B Preferred Stock Certificate of Designations by incurring debt.
"This latest decision is consistent with our long-standing position and we are pleased to see these claims resolved in our favor," commented Raúl Alarcón, Chairman and CEO. "Moving forward, we will continue to defend our company against what we believe to be meritless litigation."
The lawsuit was filed in the Delaware Court of Chancery on December 27, 2013. Among other things, the lawsuit alleged that non-payment of certain dividends caused a Voting Rights Triggering Event under the certificate of designations for the Series B Preferred Stock, and alleged that the Company was therefore prohibited from incurring indebtedness.
On May 19, 2015, the Court of Chancery issued a letter opinion granting SBS's motion to dismiss Counts I, II and IV of the lawsuit. The dismissal was formalized in an order issued by the Court on May 22, 2015. Only Count III of the lawsuit, relating to the Company's October 2013 Series B Preferred Stock repurchase, remains outstanding.
The dismissed claims were substantially similar to those brought in Lehman Brothers Holdings Inc. v. Spanish Broadcasting System, Inc., Consol. C.A. No. 8321-VCG (Del. Ch.), an action decided in SBS's favor last year.
About Spanish Broadcasting System, Inc.
Spanish Broadcasting System, Inc. is the largest publicly traded Hispanic-controlled media and entertainment company in the United States. SBS owns 20 radio stations located in the top U.S. Hispanic markets of New York, Los Angeles, Miami, Chicago, San Francisco and Puerto Rico, airing the Spanish Tropical, Regional Mexican, Spanish Adult Contemporary, Top 40 and Latin Rhythmic format genres. SBS also operates AIRE Radio Network, a national radio platform which creates, distributes and markets leading Spanish-language radio programming to over 100 affiliated stations reaching 88% of the U.S. Hispanic audience. SBS also owns MegaTV, a television operation with over-the-air, cable and satellite distribution and affiliates throughout the U.S. and Puerto Rico. SBS also produces live concerts and events and owns 21 bilingual websites, including www.LaMusica.com, an online destination and mobile app providing content related to Latin music, entertainment, news and culture. For more information, visit us online at www.spanishbroadcasting.com.
This press release contains certain forward-looking statements. These forward-looking statements, which are included in accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, may involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results and performance in future periods to be materially different from any future results or performance suggested by the forward-looking statements in this press release. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that actual results will not differ materially from these expectations. Forward-looking statements, which are based upon certain assumptions and describe future plans, strategies and expectations of the Company, are generally identifiable by use of the words "may," "will," "expect," "believe," "anticipate," "intend," "could," "estimate," "might," or "continue" or the negative or other variations thereof or comparable terminology. Factors that could cause actual results, events and developments to differ are included from time to time in the Company's public reports filed with the Securities and Exchange Commission. All forward-looking statements made herein are qualified by these cautionary statements and there can be no assurance that the actual results, events or developments referenced herein will occur or be realized. The Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.