A U.S. District Court judge on Monday rejected a motion to dismiss two shareholder lawsuits against Sinclair Broadcast Group Inc. for a breach of its fiduciary duties related to its failed merger with Tribune Media Co.
Judge Catherine C. Blake of the U.S. District Court in Baltimore rejected the telecommunications company's motion to dismiss the lawsuit, which according to the Monday court filing was based on Sinclair's assertion that the company had already formed a Special Litigation Committee to respond to shareholder concerns regarding the failed merger.
Sinclair had announced in May 2017 its intention to merge with Tribune Media Co., a deal that officially fell through in August 2018. Tribune Media Co. filed a lawsuit against Sinclair that same month alleging breach of contract.
One plaintiff is the $1 billion Norfolk County Retirement System, Canton, Mass., which filed suit in November 2018, and the other is the San Antonio Fire and Police Retiree Health Care Fund, which filed suit in December 2018.
Mark Aitken, Sinclair spokesman, could not be immediately reached for comment.