Firm Plans to File Class Action Suit Against Emmis

RADIO ONLINE | Friday, July 23, 2010 | 2:54pm CT

Wolf Haldenstein Adler Freeman & Herz, a New York law firm, is filing a class action suit against Emmis Communications on behalf of its shareholders in the company's bid to go private. The firm alleges that the proposed merger is "the product of an unfair sales process" and that the merger proposal of the stock is at "an unfair price" of $2.40 for each common share.

Wolf also contends that Emmis filed a "materially false and misleading" preliminary proxy statement in May and in June with "several material misrepresentations and omissions," that Emmis shareholders need to make an informed decisions.

Since Emmis announced in April that it would go private in a merger with Chairman/CEO Jeff Smulyan's newly formed JS Acquisition, a number of lawsuits have been filed in Indiana to block the transaction.