Stay up-to-date with the latest developments in securities law through access to both news and all statutes and regulations. Find relevant corporate filings through a searchable EDGAR database. And...
By Jacob Rund
Comic book baron and Spider-Man co-creator Stan Lee is being sued in Delaware state court for alleged disclosure failures and fiduciary duty breaches surrounding the $11.5 million sale of his media company, POW! Entertainment Inc.
The purported class action lawsuit, filed Jan. 24 in the Delaware Court of Chancery by former POW! stockholder Richard Norwood, claims Lee and two other executives didn’t make investors aware of the price each POW! share would fetch before stockholders met to vote on the sale.
Lee, the former chairman of Walt Disney Co. subsidiary Marvel Comics, served as POW!'s chairman since it was formed through a reverse merger in 2004. The company developed animated and reality-based TV shows and TV movies and was acquired last year by Hong Kong-based Camsing Entertainment International Inc.
According to the complaint, deferred compensation agreements held by Lee and Arthur Lieberman, a now-deceased co-founder, introduced conflicts of interest into the sale.
Despite these “clear” conflicts, the board never adopted a code of ethics or established committees “to ensure the conflicts were properly isolated during negotiations,” the complaint said.
The suit says Lee, Lieberman and President Gill Champion collectively held a controlling stake in the company, and alleges the company did not have appropriate internal controls in place.
The case is Richard Norwood v. Stan Lee, Del. Ch. , filed 1/24/2017.
To contact the reporter on this story: Jacob Rund at firstname.lastname@example.org
To contact the editor responsible for this story: Yin Wilczek at email@example.com
Copyright © 2018 The Bureau of National Affairs, Inc. All Rights Reserved.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)