Shareholders and some officers and directors of Emmis Communications have begun a class action suit against the company over its proposed merger. In May of this year, Emmis signed a deal to go private, but according to Radio Ink, the law firm filing the suit alleges the merger is “the product of an unfair sales process” because it would buy the stock at “an unfair price” of $2.40 per share for common stock. It also contends that Emmis filed a “materially false and misleading” preliminary proxy statement to shareholders in May.
Preferred shareholders have enough stock to block the deal. Other lawsuits over the merger are already in progress in Indiana.