Metromedia International Group Inc., East Rutherford, N.J., tentatively agreed to allow a shareholder activist to examine specific company documents to determine if John W. Kluge, Metromedia founder and chairman, and Stuart Subotnick, vice-chairman, president and CEO, have breached their fiduciary duties by engaging in related party transactions or by unfairly profiting at the expense of the companys shareholders.
Richard Bennett, principal of shareholder activist firm Lens Investment Management, won the tentative agreement, heading off a trial in Delaware Chancery Court to resolve a complaint he filed seeking access to documents under a state statute that gives shareholders the right to examine corporate books and records. Metromedia tentatively agreed to produce the documents demanded by Mr. Bennett by April 11.
Metromedia executives couldnt be reached for comment. Lens has been retained by Elliott Associates and Elliott International, hedge funds that are shareholders.