Robbins Umeda LLP Announces an Investigation of Clear Channel Outdoor Holdings, Inc.
March 15 2012 - 3:30PM
Business Wire
Shareholder rights firm Robbins Umeda LLP is investigating
possible breaches of fiduciary duty and other violations of the law
by certain officers and directors at Clear Channel Outdoor
Holdings, Inc. (NYSE: CCO) ("Clear Channel"). Concerned
shareholders who would like more information about their rights and
potential remedies can contact attorney Gregory E. Del Gaizo at
(800) 350-6003, info@robbinsumeda.com, or via the shareholder
information form on the firm's website.
Robbins Umeda LLP's investigation focuses on whether Clear
Channel's controlling shareholder, Clear Channel Communications
("CCC"), and members of the board of directors at Clear Channel
breached their fiduciary duties to shareholders. In particular, the
firm is investigating a questionable $1 billion unsecured loan from
Clear Channel to CCC that Clear Channel's board approved at CCC's
insistence. The terms of the loan are so favorable to CCC that, had
Clear Channel lent the money at a reasonable market interest rate,
it would earn twice as much interest on the loan. In addition,
Clear Channel faces a significant risk that this unsecured loan
will never be paid back due to CCC's debt load and current
financial health.
As a result of the questionable loan, Clear Channel has and will
be severely damaged because it is only receiving interest of 9.25%,
rather than the 17.5% or more that market rates dictate. CCC, which
owns 89% of Clear Channel's stock and controls 99% of the voting
power, has used its control to compel Clear Channel's board to
approve this questionable loan, and the board has willingly
complied.
Robbins Umeda LLP highlights that Clear Channel shareholders
have the option to file a derivative action to hold those officers
and directors accountable for damaging the company. Remedies
commonly sought in derivative actions include corporate governance
reforms designed to prevent future misconduct, removal of officers
or directors whose misconduct injured the corporation, and monetary
payments in the form of damages and disgorgement of ill-gotten
gains.
Robbins Umeda LLP is a nationally recognized leader in
securities litigation and shareholder rights law. The firm
represents individual and institutional investors in shareholder
derivative and securities class action lawsuits, and has helped its
clients realize more than $1 billion of value for themselves and
the companies in which they have invested. For more information,
please go to http://www.robbinsumeda.com.
Press release link:
http://www.robbinsumeda.com/shareholders-rights-blog/clear-channel-outdoor/
Attorney Advertising. Past results do not guarantee a similar
outcome.
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