Lehman Bros. Loses Contract Suit Over $29M In Dividends

Law360, Los Angeles (February 25, 2014, 6:13 PM EST) -- A Delaware Chancery Court judge on Tuesday rejected allegations brought by Lehman Brothers Holdings Inc. and others that Spanish Broadcasting System Inc. violated a contract on its preferred shares by taking on massive new debts despite failing to pay $29 million in dividends, saying the plaintiffs agreed to the actions.

The defunct investment bank targeted radio and TV station operator SBS in the suit last year, alleging the Miami-based Spanish-language broadcaster repeatedly missed quarterly dividend payments since 2009 while undertaking a $275 million refinancing and other...
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