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Tegna Shareholder Sues Claiming Takeover Filings Are ‘False and Misleading’

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(Image credit: Witthaya Prasongsin via Getty Images)

A Tegna shareholder has sued the broadcaster and its board seeking to enjoin the company from closing its sale to Standard General because its proxy statements are “false and misleading."

Marc Waterman, who says in the suit he is an owner of Tegna common stock, filed the suit in the United States District Court on March 30. 

Also: NewsGuild Urges Review Of Apollo Financing Of Tegna Buyout

Waterman has filed a number of shareholder suits in the last year. On January 22, 2021, he sued Nielsen and its directors after it agreed to sell its Global Connect unit, claiming the company failed to disclose material information regarding Nielsen’s financial projections. Waterman voluntarily dismissed the action on February 5, 2021.

Also: Standard General Says Change Will Be Good for Tegna

In the suit against Tegna, Waterman charges that the proxy statement “omits material information regarding the company’s financial projections.” It also says the proxy doesn’t disclose some of the items used to make the projections that are contained in the document. 

Waterman’s suit seeks preliminary and permanent injunctions preventing Tegna from proceeding with and closing the transaction. It requests that a proxy statement be produced that “does not contain any untrue statements of material fact.” 

Waterman is also seeking court costs, attorneys' and experts’ fees.

A Tegna spokesperson could not be reached for comment. ■

Jon has been business editor of Broadcasting+Cable since 2010. He focuses on revenue-generating activities, including advertising and distribution, as well as executive intrigue and merger and acquisition activity. Just about any story is fair game, if a dollar sign can make its way into the article. Before B+C, Jon covered the industry for TVWeek, Cable World, Electronic Media, Advertising Age and The New York Post. A native New Yorker, Jon is hiding in plain sight in the suburbs of Chicago.