A New York-area law firm says it is probing whether the merger of the Walt Disney Company’s pay television business with that of Fubo is in the best interest of the latter’s shareholders.
On Monday, attorneys representing Halper Sadeh LLC issued a press release saying the firm has launched an investigation into whether Fubo and its Board of Directors “violated the federal securities laws and/or breached their fiduciary duties to shareholders” by failing to obtain the best possible deal in the interest of Fubo’s shareholders.
The firm also says it is probing whether Fubo had disclosed “all material information necessary” to the company’s shareholders concerning its deal with Disney, which will marry Fubo’s pay television business with that of Disney’s Hulu with Live TV (stylized as Hulu + Live TV).
As described, the unification of the two pay TV businesses will create a single operation that serves more than 6 million subscribers across both Fubo and Hulu with Live TV. Disney will own 70 percent of the newly-formed venture, with Fubo owning the rest and maintaining its position as a separate, public-traded company. Fubo’s executive leadership will operate the company, and Disney will form a board of directors to oversee it.
The deal is still subject to regulatory and shareholder approval, neither of which are guaranteed. But both sides apparently felt confident enough that the merger will sail through, with Fubo agreeing to drop its antitrust lawsuit against Disney and two other broadcasters over the formation of the streaming service Venu Sports. (The joint venture backers of Venu Sports, which include Fox and Warner Bros Discovery, will pay Fubo a $220 million settlement.)
Halper Sadeh said it has an interest in working with Fubo shareholders who feel the company wasn’t fully forthcoming with information about the Disney deal or otherwise didn’t execute an agreement with Disney in the best interest of shareholders. The law firm’s two attorneys, Daniel Sadeh or Zachary Halper, say they will handle any action against Fubo “on a contingent fee basis,” which means shareholders would not be required to pay out of pocket for legal expenses incurred, unless a court awards damages.
“Halper Sadeh LLC represents investors all over the world who have fallen victim to securities fraud and corporate misconduct,” the firm said. “Our attorneys have been instrumental in implementing corporate reforms and recovering millions of dollars on behalf of defrauded investors.”
Shareholders who are interested in learning more about their legal rights are encouraged to visit the Halper Sadeh website.
