John Malone and Charter Directors Agree to $87.5 Million Settlement

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John Malone and his former colleagues on Charter’s board agreed to an $87.5 million settlement of claims the billionaire unfairly benefited from the $79 billion purchase of Time Warner Cable he helped finance. The accord disclosed in a Delaware court filing resolves an investor’s lawsuit against directors of the second-largest US cable company over their handling of the 2016 deal. The money will come from insurance covering directors named in the suit and will go into Charter’s coffers, not to the shareholder who filed the case. Investor Matthew Sciabacucci accused the directors of allowing Malone, then on the board, to reap unfair tax benefits from stock he got in the merger through a side deal. Charter agreed to settle Sciabacucci’s claims “to avoid the burden, expense, disruption, and distraction of further litigation,” according to court filings. The directors said they aren’t admitting any wrongdoing as part of the deal. [The case is Sciabacucci v. Liberty Broadband Corp., No. 11418, Delaware Chancery Court (Georgetown).]


John Malone and Charter Directors Agree to $87.5 Million Settlement