Virgin board sued over “unfair” Liberty sale

Virgin logo glassA class action brought in the Supreme Court in New York, arguing that the sale of Virgin Media to Liberty Global has been unfairly conducted.

The action, brought by law firm Levi & Korinsky on behalf investor Jeff Grimsley, names Virgin Media CEO Neil Berkett, CFO Eamonm O’Hare and fellow board members including Charles Allen, James Chiddix and William Huff.

Such actions are commonplace in the US legal system and this one seems unlikely to derail the process.

Levi & Korsinsky are currently involved in other actions against firms including Heinz, Tellabs and Dell.

The Virgin Media action accuses the board of breaches in fiduciary duties arising out of the proposed sale through an “unfair process and for an unfair price”, arguing that the 24% premium fails to adequately compensate Virgin Media’s shareholders for the “significant synergies” created by the merger.

It says Liberty Global is seeking to acquire the Company at the most opportune time and has excluded the possibility of a counterbid for the company.

Grimsley believes there to be several thousands of shareholders that would be included in the action.