Spanish Broadcasting System Wins Summary Judgment in Preferred Stockholder Lawsuit

Skadden won summary judgment on all counts for Spanish Broadcasting System, Inc. against certain of its preferred stockholders who sought relief arising from purported breaches of a certificate of designations, based on their allegation that a "Voting Rights Triggering Event" (VRTE) had occurred. On February 25, Vice Chancellor Sam Glasscock III of the Delaware Court of Chancery found that even if a VRTE had taken place and the company's actions were barred by the certificate, the plaintiffs had actual or imputed knowledge of all of the facts underlying their claims before the alleged breaches occurred, but failed to object. Accordingly, the plaintiffs' claims were barred by their acquiescence.