Robbins Umeda LLP Announces an Investigation of Clear Channel Outdoor Holdings, Inc.
Robbins Umeda LLP is investigating possible breaches of fiduciary duty and other violations of the law by certain officers and directors at Clear Channel Outdoor Holdings, Inc. (NYSE: CCO)(“Clear Channel”). Concerned shareholders who would like more information about their rights and potential remedies can complete the form below and we will contact you directly. You can also contact attorney Gregory E. Del Gaizo at (800) 350-6003.
Robbins Umeda LLP’s investigation focuses on whether Clear Channel’s controlling shareholder, Clear Channel Communications (“CCC”), and members of the board of directors at Clear Channel breached their fiduciary duties to shareholders. In particular, the firm is investigating a patently unfair $1 billion unsecured loan from Clear Channel to CCC that Clear Channel’s board approved at CCC’s insistence. The terms of the loan are so favorable to CCC that, had Clear Channel lent the money at a reasonable market interest rate, it would earn twice as much interest on the loan. In addition, Clear Channel faces a significant risk that this unsecured loan will never be paid back due to CCC’s already massive debt load and dubious financial health.
As a result of the unfair loan, Clear Channel has and will be severely damaged because it is only receiving interest of 9.25%, rather than the 17.5% or more that market rates dictate. CCC, which owns 89% of Clear Channel’s stock and controls 99% of the voting power, has used its control to compel Clear Channel’s board to approve this unfair loan, and the board has willingly complied.
Robbins Umeda LLP highlights that Clear Channel shareholders have the option to file a derivative action to hold those officers and directors accountable for damaging the company. Remedies commonly sought in derivative actions include corporate governance reforms designed to prevent future misconduct, removal of officers or directors whose misconduct injured the corporation, and monetary payments in the form of damages and disgorgement of ill-gotten gains.
Robbins Umeda LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.