MSGE - MSG Entertainment agrees to settle merger lawsuit for $48.5M

2023-04-06 17:15:35 ET

• Madison Square Garden Entertainment ( NYSE: MSGE ) has reached a settlement of class action litigation tied to the merger between MSGE and MSG Networks.
• The company says in an SEC filing that on Thursday the parties came to agreement in principle on terms to settle the suit -- a combination of four complaints, the first of which was filed on June 9, 2021.
• The plaintiffs had alleged that members of the MSG Networks board and controlling stockholders breached fiduciary duties in negotiating and agreeing to the merger, and seek monetary damages.
• Now the agreed term sheet provides for MSG Networks to pay the class $48.5M.
• MSG Networks is currently in dispute with insurers over coverage for the settlement, and while that sorts out, certain insurers are advancing $20.5M to fund the settlement, the company said.
• MSG Entertainment closed on its acquisition of MSG Networks in early July 2021 .

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