Mediacom Communications Corporation Investors Fight Buyout With Lawsuit

If you are a current investor in Mediacom Communications Corporation (NASDAQ:MCCC) and purchased your MCCC shares prior to the takeover announcement, and/or have any information relating the lawsuit and its allegations including also whistleblowers and former employees, you have certain options and you should contact the Shareholders Foundation, Inc.

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Company Name(s): 
Mediacom Communications
Case Name: 
Mediacom Communications Deal Case
Case Status: 
Lawsuit Filed
Affected Securities
NASDAQ: MCCC
Lawsuit Overview
Type of Lawsuit: 
Mergers and Acquisition
Date Filed: 
12/13/2010
Deadline To File for Lead: 
02/12/2010
Summary: 

An investor in Mediacom Communications Corp. shares filed a lawsuit in connection with the proposed acquisition of Mediacom Communications by Rocco Commisso, Mediacom’s Chairman, Chief Executive Officer, and controlling shareholder.

According to the complaint the plaintiff alleges that the defendants violated Section 14(a) of the Securities Exchange Act of 1934 and corresponding Rule 14a-9. In particular, the plaintiff alleges that the defendants have issued materially false or misleading statements regarding the proposed acquisition.
Middletown based Mediacom Communications Corporation announced on Monday, Nov. 15, 2010, that it has entered into a merger agreement with Rocco B. Commisso, the founder, Chairman and Chief Executive Officer of Mediacom, and an entity created by Mr. Commisso. Upon consummation of the merger, all of the outstanding shares of Mediacom common stock not owned by Mr. Commisso will convert into $8.75 per share in cash.

Mr. Commisso previously made a "going private" proposal on May 31, 2010 under which Mr. Commisso proposed to acquire all publicly held shares of Mediacom common stock for $6.00 per share.

Shares of Mediacom Communications Corporation (MCCC) increased in response to the takeover news by 22%. MCCC shares traded on Friday at almost $7 per share and in creased on Monday to $8.50 per share.

According to a June regulatory filing, Commisso has “87 percent voting power and owns about 40 percent of the total shares outstanding.”

In addition Mediacom Communications 12month Total Revenue increase from $1.21billion in 2006 to $1.46billion in 2009. While Mediacom Communications Corp reported a Net Loss of $124.92million in 2006, it was able to report a Net Income of $744.07million in 2009. For the first two quarters in 2010 Mediacom Communications Corporation reported quarterly Total Revenue of $368.68million, respectively $377.01million.