Settlement Proposed in Marvel Shareholder Litigation

19 May, 2010 By: Erik Gruenwedel

Marvel Entertainment LLC May 19 said there is a proposed settlement with a group of shareholders that sued over the $4 billion acquisition by The Walt Disney Co.

Shortly after the Aug. 31, 2009 announcement of Disney’s desire to acquire Marvel, several shareholders filed litigation claiming Marvel’s board of directors failed in their fiduciary duties to obtain a better return for shareholders, among other charges.

Terms of the proposed settlement, excluding request for $800,000 in legal fees, were not disclosed.

As part of the original merger, Marvel shareholders of record received $30 cash per share, in addition to 0.7452 shares of Disney common stock.

A “fairness hearing” regarding the proposed settlement is slated for July 12 in New York.