Cablevision Systems Corporation
(“Cablevision" or “the Company”) is a Bethpage, New York based provider of cable television and
telecommunications services. The firm also owns substantial sports and entertainment assets.
A group of controlling shareholders (the “Dolan Family Group”)
owns approximately 24% of the Company’s stock, and via super-voting shares, exercises control over the board.
On October 9, 2006, the Company disclosed that the Dolan Family Group had offered to purchase the publicly held
shares for $27 per share.
On October 16, 2006 BLB&G filed a complaint against the Company and
certain of its officers and directors on behalf of its client Louisiana
Municipal Police Employees’ Retirement System and other similarly situated shareholders, alleging that
the proposed transaction reflected inadequate value and failed to provide necessary protections for
Cablevision's minority shareholders, and that the transaction arose from breaches of fiduciary duty.
On November 3, 2006, the Honorable Stephen A. Bucaria appointed Louisiana
Municipal Employees’ Retirement System as a Lead Plaintiff and BLB&G as co-Lead Counsel for the Class.
Cablevision established a special committee of the board to
review the Dolan Family Group's offer. BLB&G, along with an investment banker it retained in
connection with the case, made presentations to both the Special Committee and the Dolan Family Group,
explaining why the $27 offer was grossly inadequate and explaining why Lead Plaintiffs believed a
significantly higher price was warranted. After those presentations were made, the Dolan Family Group
increased its offer to $30 and claimed that this would be its final and best offer.
BLB&G urged the Special Committee to negotiate for a higher price. The Special Committee rejected
the $30 offer as being inadequate.
Discussions restarted in April 2006, and BLB&G was actively involved in
extensive and vigorous negotiations with the Dolan Family Group and consultations with the Special Committee.
On May 2, 2007, the Dolan Family Group announced an offer at $36.26 per share, which represents an increase in
consideration of over $2.2 billion above the October 2006 offer. In connection with the $36.26 offer, the
parties announced a settlement of the class actions. The matter continues.
Firm partners Jerry Silk
and Mark Lebovitch are
responsible for prosecuting this action.
