Purcell Julie & Lefkowitz LLP Announces Court Approval of the Settlement in the Madison Square Garden Sports Corp. Stockholder Lawsuit
NEW YORK, NY / ACCESSWIRE / September 15, 2020 / Purcell Julie & Lefkowitz LLP is pleased to announce that the Delaware Court of Chancery has approved the previously announced settlement of the stockholder derivative action brought against James Dolan, the Executive Chairman of Madison Square Garden Sports Corp. ("MSG Sports") (NYSE:MSGS) and the Chief Executive Officer and Executive Chairman of Madison Square Garden Entertainment Corp. ("MSG Entertainment") (NYSE:MSGE).
The settlement requires James Dolan to surrender stock awards, valued at over $30 million, he received as "special" compensation in 2018. The stock awards were originally granted by MSG Sports but were then later split between MSG Sports and MSG Entertainment following the latter's spin-off from MSG Sports. The settlement further provides that MSG Sports and MSG Entertainment will not reinstate or recompense Mr. Dolan for the cancelled awards, and that future compensation decisions at MSG Sports and MSG Entertainment regarding Mr. Dolan will be made with the assistance of an independent compensation consultant.
"The settlement is an outstanding result for MSG Sports, MSG Entertainment, and their stockholders" said Robert H. Lefkowitz, an attorney at Purcell Julie & Lefkowitz LLP that represented the stockholder plaintiff. "Stockholders want share prices to increase, not executive compensation. The settlement is a big step in that direction."
The derivative lawsuit, brought by a stockholder of MSG Sports, alleged that James Dolan and various members of the Dolan family breached their fiduciary duties to MSG Sports and its stockholders by granting James Dolan over $75 million in compensation - including the "special" equity awards - between 2016 and 2018. Following the filing of the complaint, MSG Sports formed a special litigation committee to investigate the claims made by the stockholder plaintiff, and the special committee ultimately concluded that it was in the best interests of MSG Sports and its stockholders that James Dolan return the "special" awards. On September 8, 2020, the Delaware Court of Chancery approved the settlement, finding that it was an "excellent" result.
Purcell Julie & Lefkowitz LLP is a law firm exclusively committed to representing shareholders nationwide who are victims of securities fraud, breaches of fiduciary duty and other types of corporate misconduct. For more information about the firm and its attorneys, please visit https://pjlfirm.com. Attorney advertising. Prior results do not guarantee a similar outcome.
SOURCE: Purcell Julie & Lefkowitz LLP
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