$45M MySpace Deal Axed For Stiffing Early Stock Sellers

Law360, New York (September 29, 2011, 6:40 PM EDT) -- A California federal judge on Thursday rejected a $45 million settlement between stockholders and Intermix Media Inc., former owner of social networking site MySpace.com, because it shortchanged class members who sold their shares ahead of the company's 2005 sale to News Corp.

U.S. District Judge George King sided with an investment firm that objected to the settlement, which would have ended a six-year class action accusing Intermix of misleading shareholders and undervaluing the company in the $580 million deal.

“Plaintiff relies on two cases, but neither...
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