NEW YORK, Oct. 06, 2017 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that it filed a class action complaint in the United States District Court for the Eastern District of Tennessee on behalf of holders of Scripps Networks Interactive, Inc. (“Scripps”) (NASDAQ:SNI) common stock in connection with the proposed transaction pursuant to which Scripps will be acquired by Discovery Communications, Inc. (“Discovery”). The Complaint, which alleges violations of the Securities Exchange Act of 1934 against Scripps and its Board of Directors (the “Board”) is captioned Eli Inzlicht-Sprei v. Scripps Networks Interactive, Inc., et al., Case No.: 3:17-cv-00420 (E.D. Tenn.).
On July 31, 2017, Discovery and Scripps announced that they signed a definitive agreement for Discovery to acquire Scripps in a cash and stock transaction valued at $14.6 billion, or $90 per share, based on Discovery’s Friday, July 21, 2017 closing price (the “Proposed Transaction”). Scripps shareholders will receive $90 per share under the terms of the agreement, comprised of $63.00 per share in cash and $27.00 per share in Class C Common shares of Discovery stock, based on Discovery’s Friday, July 21, 2017 closing price.
The Complaint alleges (among other things) that, in an attempt to secure shareholder support for the Proposed Transaction, Defendants issued materially incomplete disclosures in a registration statement (the “Registration Statement”) filed with the United States Securities and Exchange Commission on September 14, 2017. The Complaint alleges that the Registration Statement, which recommends that Scripps stockholders vote in favor of the Proposed Transaction, omits material information necessary to enable shareholders to make an informed decision as to how to vote on the Proposed Transaction. The Complaint seeks injunctive and equitable relief and damages on behalf of holders of Scripps common stock.
If you wish to serve as lead plaintiff, you must move the Court no later than December 5, 2017. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to join the litigation, or to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
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