Longkloof Limited Files Lawsuit Against New Frontier Media
Longkloof Limited today announced that it has counterclaimed against New Frontier Media, Inc. (NASDAQ: NOOF) and its Board of Directors claiming that the Board has breached its fiduciary duties in denying Longkloof's nomination of a slate of four directors and in stonewalling Longkloof's previously announced all-cash, fully financed offer to acquire the Company.
The counterclaims allege, among other things, that the Board is seeking to entrench itself and to continue to pay themselves extravagant directors' fees. To preserve their annuity, the Board is resisting any offer to acquire the Company even on generous terms. The effort to deny shareholders the opportunity to vote for a competing slate – that would more open-mindedly consider all acquisition proposals – is simply a continuation of the Board's efforts to entrench themselves in office.
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