Lawsuit Alleges Scheme to Oppress Minority Shareholders
WILMINGTON, Del., Dec. 12, 2012 /PRNewswire-USNewswire/ -- Crest Financial Limited, a Texas-based investment company and a substantial minority shareholder in Clearwire Corporation, today filed a complaint in the Court of Chancery here against Sprint Nextel Corporation, Sprint Holdco LLC, Eagle River Investments LLC, Clearwire and the members of the board of directors of Clearwire. The lawsuit alleges that Clearwire abetted and the other defendants breached their fiduciary duties by allowing Sprint to extract for itself the value of Clearwire's high-speed, broadband spectrum to the detriment of Clearwire's minority shareholders. The complaint can be found here: www.bancroftpllc.com/crest.
Crest Financial separately requested expedited consideration of its complaint by May 2013. Crest Financial is seeking injunctive relief against Sprint's pending merger with Softbank and against Sprint's interference with Clearwire's previously announced plans to raise funds and build out Clearwire's network. The lawsuit also seeks compensatory damages and any further relief that the Court deems appropriate. Crest Financial initially expressed some of the basic concerns in today's complaint in November 2012 in a letter to the chief financial officer of Mount Kellett Financial Management LLP, another minority shareholder. Crest Financial intends to petition the Federal Communications Commission to deny the Sprint-Softbank merger under its current structure.
Crest Financial with its affiliates currently owns 45,756,898 Class A shares of Clearwire or approximately 6.62 percent of Clearwire's outstanding Class A stock.
SOURCE Crest Financial Limited