iHeartMedia Wins Gamco Lawsuit

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    An iHeartMedia spokesperson told Radio Ink over the weekend that, “We are pleased with the Delaware Chancery Court’s decision to dismiss the lawsuit.” Delaware Court Judge Joseph Slights ruled in favor of iHeart dismissing the lawsuit filed by Gamco Asset Management, which claimed iHeartMedia improperly moved revenue from Clear Channel Outdoor.

    Gamco failed to prove iHeart violated legal duties to shareholders by making that move. The judge said GAMCO couldn’t show iHeart “extracted a unique benefit” by paying down debt with the advertising unit’s funds that “came at the expense” of other investors.

    This issue dates back to May when, days after iHeartMedia won a court decision with disgruntled bondholders, Gamco Asset Management filed its lawsuit accusing the board of violating its duty to protect shareholders by moving Clear Channel Outdoor revenue to iHeartmedia. Here’s what iHeart told us about the lawsuit back then. “We believe the allegations in the lawsuit are baseless and without merit. The Clear Channel Outdoor Holdings, Inc. Board of Directors takes seriously its responsibilities and duties to the Company and to all CCOH stockholders. The Board established a special committee of independent directors in 2013 for the specific purpose of monitoring the intercompany note between CCOH and iHeartCommunications, Inc. We are confident that the Board and the special committee have properly discharged their responsibilities and duties to the Company and to all CCOH stockholders and will continue to do so.”

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