Kreindler & Kreindler LLP (think $2.7 billion Vioxx settlement) has filed a class action lawsuit on behalf of shareholders of Intermix Media, Inc., which includes MySpace, alleging that current directors, officers and controlling shareholders of Intermix designed a sale to News Corporation that benefited themselves at the expense of the Company and its public shareholders. The class action lawsuit was filed in the Superior Court of the State of California for the County of Los Angeles.
The complaint alleges that instead of attempting to obtain the best terms for Intermix and its shareholders, the defendants structured the transaction to reduce their liability and maximize their gain.
Intermix at $12 a share does seem low (Disclaimer: I own MIX shares). I wonder what a more reasonable price would be?
Intermix Stockholder Meeting Scheduled For September 28.
Link to news release.
