According to the Complaint, Tribune Media Company ("Tribune" or the "Company") is a media company with a diverse portfolio of television and digital properties. It owns or operates 42 local television stations in 33 markets. It also owns national entertainment network WGN America, digital multicast network Antenna TV, Tribune Studios, WGN-Radio, minority stakes in the TV Food Network and CareerBuilder, and a variety of real estate assets.
The Complaint alleges that, during the Class Period, the Defendants made materially false and misleading statements and omitted material adverse facts concerning the conduct of Sinclair Broadcast Group Inc. (“Sinclair”) during the process of seeking regulatory approval necessary to complete a proposed merger between Tribune and Sinclair (the “Merger”). Specifically, the Complaint alleges that while the Defendants frequently discussed the regulatory steps necessary to complete the Merger in public statements and presentations, including Sinclair’s purported agreement to take certain actions to secure regulatory approval, the Defendants misstated or omitted the fact that: (i) Sinclair was refusing to divest itself of television stations in certain markets necessary in order to secure regulatory approval; and (ii) Sinclair was taking the position that it was not legally or contractually obligated to complete the identified divestitures to ensure regulatory approval. As a result of the Defendants’ false and misleading statements and omissions, Tribune common stock traded at artificially inflated prices during the Class Period and such inflation was removed when it was revealed that the Merger had not received regulatory approval by the applicable deadline and would not close. The Complaint seeks an award of damages, and prejudgment interest, to Plaintiff and other Class members.
On December 18, the Court issued an Order appointing Lead Plaintiffs and Counsel. Lead Plaintiffs filed an amended Complaint on January 31, 2019. Defendants filed a Motion to Dismiss the amended Complaint on March 29. On January 7, 2020, the Court issued an Order granting Defendants' Motion to Dismiss, dismissing the case with prejudice. Lead Plaintiffs filed a notice appealing the Court's dismissal Order on February 3. On Februrary 5, Lead Plaintiffs voluntarily dismissed their appeal.