As I write this, Sinclair Broadcast Company’s stock has fallen to its lowest levels since 1995. And that’s not the worst news they’re likely to receive today.
Via my friend Darrell, I see that Sinclair’s officers are about to face an insider-trading lawsuit.
Sinclair Broadcasting Shareholders Demand Officers Return Profits From Insider Trading
Officers Who Ordered Stations to Show Anti-Kerry Film Also Sold Stocks at High Mark, then Drove Values Down
Famed shareholder attorney William S. Lerach will hold a news conference at 1 p.m. today to discuss insider self-dealing by officers of Sinclair Broadcasting, the Baltimore-based television chain that is forcing its affiliates to show a propaganda film that attacks presidential candidate John Kerry. He will release a set of demands aimed at making Sinclair executives disgorge millions of dollars in unjustified profits taken out of the firm when stock prices were high during the past 12 months.
And, making matters worse, Media Matters is moving towards a shareholders’ action of its own.
Media Matters for America (MMFA) announced today that it is underwriting the costs of a shareholder action, demanding that Sinclair Broadcast Group, Inc., provide equal time to those “with views opposed to the allegations” in the anti-Kerry film Stolen Honor, which Sinclair plans to air between October 21-24, in prime time, on all 62 of its stations reaching up to 25 percent of U.S. TV households.
At 10 a.m. today, a letter from Glickenhaus & Co., a Wall Street firm with clients who hold stock in Sinclair, was delivered to the CEO of Sinclair, David D. Smith, and the company’s board of directors, demanding that they immediately “provide those with views opposed to the allegations in the film an equal opportunity to respond.” If an answer to Glickenhaus’ demand is not received by close of business today, Tuesday October 19, additional remedies, including an injunction in a court of law prior to the first scheduled airing of Stolen Honor October 21, may be sought.
“Our mission is to thwart conservative misinformation in the media and ensure that the media offer the American public fair and balanced access to news and information,” explained MMFA President and CEO David Brock. “We determined a stockholder effort is the strongest remaining course of action to force Sinclair to reconsider its decision to air Stolen Honor.”
And did I mention that the number of advertisers who have pulled their Sinclair accounts has almost reached 80?