Richard A. Bennett, a principal of shareholder activist firm Lens Investment Management, was granted a March 28 trial date in Delaware Chancery Court to inspect Metromedia International Group Inc.s books and records.
Working on behalf of Elliott Associates and Elliott International hedge funds, which retained Lens, and other shareholders, Mr. Bennett is seeking to determine whether John W. Kluge, Metromedia chairman, and Stuart Subotnick, vice-chairman, president and CEO, have breached their fiduciary duties by engaging in related party transactions or by otherwise unfairly profiting from Metromedia at the expense of its public shareholders.
His complaint was filed in Delaware, where corporate law gives shareholders the right to examine a companys books and records.
"We gave Metromedias management every opportunity to work with us; instead they chose to thwart our efforts to exercise the rights granted to all shareholders. They have left us with little option other than to seek due process, Mr. Bennett said.