Porn Co. Shareholders Challenge Larry Flynt's $33M Takeover

Law360, New York (November 9, 2012, 3:39 PM EST) -- Adult-entertainment production and distribution company New Frontier Media Inc. on Thursday was hit with a putative shareholder class action in Colorado federal court alleging that Larry Flynt's proposed $33 million takeover of the company is “grossly inadequate.”

Named plaintiff Craig Telke said the proposed merger between New Frontier and a unit of Larry Flynt's LFP Inc. not only undervalued the company, but was crafted to dissuade any other potential suitors who have been eyeing the company, a move that violated the company's fiduciary duty to shareholders,...
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