Hollywood Video Shareholders File Lawsuit2 Apr, 2004 By: Erik Gruenwedel
A group of Hollywood Video shareholders have filed a class-action lawsuit against the chain's parent, Hollywood Entertainment Corp., its board of directors, CEO and a Los Angeles-based mergers and acquisition company.
The suit claims, among other things, that the company's board and CEO Mark Wattles “breached their fiduciary duties” when proposing this week to take the company private in a deal with private investors worth $890 million.
The plaintiffs, who argue the $14 per share offer is “unfair and inadequate,” wish to have the proposal enjoined.
Hollywood, which confirmed that a separate suit regarding deal the may be forthcoming, said the suit is without merit and intend to respond accordingly.