NEW YORK, Jan. 10, 2005 (PRIMEZONE) -- Faruqi & Faruqi, LLP filed a class action lawsuit in the Court of Chancery in the State of Delaware, on behalf of its client and all persons or institutions who held shares of Fox Entertainment Group, Inc. ("Fox Entertainment"or the "Company") (NYSE:FOX) challenging the fairness of the recent merger proposal made by the News Corporation ("News Corp.") (NYSE:NWS), which owns approximately 82% of Fox Entertainment's outstanding stock.
Among other things, plaintiff's Complaint alleges that the consideration to be paid to Class members in the transaction is unconscionable and unfair and grossly inadequate because the intrinsic value of Fox Entertainment's common stock is materially in excess of the amount offered given the stock's current trading price and the Company's prospects for future growth and earnings. Additionally, the Complaint alleges defendants have breached their duty of loyalty to Fox Entertainment stockholders by using their control of Fox Entertainment to force plaintiff and the Class to exchange their equity interest in Fox Entertainment at an unfair price, and deprive Fox Entertainment's public shareholders of maximum value to which they are entitled. The Complaint alleges further that defendants have also breached their duties of loyalty and due care by not taking adequate measures to ensure that the interests of Fox Entertainment's public shareholders are properly protected from overreaching.
Plaintiff is represented by Faruqi & Faruqi, LLP, a law firm with extensive experience in prosecuting class actions, and significant expertise in actions involving corporate fraud. If you wish to discuss this action, or have any questions concerning this notice or your rights or interests, please contact: