Primedia asks Del. judge to toss shareholder suit
WILMINGTON, Del. -- Primedia Inc. is asking a Delaware judge to dismiss a shareholder lawsuit challenging the acquisition of the Georgia-based house and apartment search guide publisher by private investment firm TPG Capital for $316 million.
The shareholders allege that last year's sale did not take into account the value of derivative insider claims against Primedia's controlling shareholder, management buyout specialist Kohlberg Kravis Roberts & Co., and allowed KKR to escape liability for those claims.
Primedia attorneys argued Wednesday that the case should be dismissed because the plaintiffs have not shown any improper motive by KKR related to the sale, or that KKR received any benefit to the exclusion and detriment of minority shareholders.
The judge did not immediately rule on the motion to dismiss, saying his decision would not be easy.