Cases

Hearst-Argyle Television, Inc. Class Action for Self-Dealing and Breach of Fiduciary Duty

Gardy & Notis, LLP has been appointed by the Court as lead counsel for shareholders of Hearst-Argyle Television, Inc. (NYSE: HTV) seeking to enjoin the efforts of Hearst Corporation (the majority and controlling shareholder of Hearst-Argyle) to cash out the Company's shareholders for $23.50 per share through a coercive tender offer.

Among other things, the lawsuit alleges that Hearst Corporation timed the public announcement of its proposed buyout to coincide with a temporary decline in the price of Hearst-Argyle stock that was in part due to a general decline in world markets that were negatively impacted by the collapse of the sub-prime mortgage market and overall liquidity crisis. For example, Hearst-Argyle reached a 52-week high of $27.79 on April 17, 2007, but then dropped, along with most of the stock market, in July and August following disclosure of increased defaults among sub-prime lenders and the ripple effect that it had on the credit markets. Hearst-Argyle reached its 52-week low on $19.74 on August 16, 2007. Seven days later, on August 24, 2007, with the markets still suffering from the sub-prime lender crisis and Hearst-Argyle stock trading at depressed levels, Hearst Corporation announced the proposed buyout at the opportunistic (and inadequate) price of just $23.50 per share.

The case is In re: Hearst-Argyle Television, Inc. Shareholder Litigation, Index No. 07-602881, New York State Supreme Court, New York County.

For more information regarding the lawsuit or to obtain a copy of the complaint or any Court filings, please contact us.