Gardy & Notis, LLP and Abbey Spanier, LLP Announce Proposed $39 Million Settlement for former Primedia, Inc. Stockholders

WILMINGTON, Del., March 30, 2015 /PRNewswire/ -- Gardy & Notis, LLP and Abbey Spanier, LLP, as lead counsel for plaintiff in a lawsuit called In re Primedia, Inc. Stockholders Litigation, C.A. No. 6511-VCL, pending in the Court of Chancery for the State of Delaware, announce that a proposed settlement has been reached in the lawsuit.  The settlement provides for a $39 million recovery for former Primedia, Inc. stockholders who held shares as of the close of trading on July 13, 2011, which was the date on which all Primedia shares were converted into the right to receive $7.10 cash per share as a result of a merger with affiliates of TPG Capital L.P.  Any Primedia stockholder who was cashed-out in the merger can make a claim to participate in the settlement.  Plaintiff estimates that the gross recovery in the settlement is approximately $2.35 per share.

Members of the Class include investors who held Primedia stock between January 11, 2011 (the date that Primedia issued a press release to disclose that it was exploring strategic alternatives) and July 13, 2011 (the date the merger closed).  Defendants, or affiliates or relatives of the Defendants, are not members of the Class.

Affiliates of Kohlberg Kravis Roberts & Co. LP (or "KKR") were Primedia's controlling stockholders at the time of the merger.  The lawsuit claimed the former Board of Directors of Primedia and KKR and its affiliates breached duties owed to Primedia stockholders in connection with the merger.  The lawsuit claimed that the Board and KKR engaged in an unfair process in approving and recommending the merger, and agreed to the merger at an unfairly low price.  Plaintiff had previously filed a derivative action on behalf of Primedia alleging that KKR had improperly traded in Primedia's preferred stock, and that KKR should pay to Primedia the money that KKR made in connection with its improper trading in Primedia preferred stock.  Plaintiff in the lawsuit claimed that the Board and KKR incorrectly decided that the derivative action was not worth any money to Primedia or the stockholders.  Plaintiff alleges that if the Board and KKR considered the true value of the derivative action, stockholders could have received more money in the merger.  Defendants deny each of these allegations and all liability and damages.

In consideration for the settlement, and the release by the members of the Class, Defendants have agreed to create a $39 million fund to be divided among all members of the Class who owned Primedia stock on July 13, 2011 and who send in a valid claim form.  A detailed notice and claim form contain the information necessary to request a payment.  Claim forms must be postmarked by July 21, 2015 to the Settlement Administrator: Primedia Stockholders Litigation, c/o Strategic Claims Services, 600 North Jackson Street, Suite 3, Media, Pennsylvania 19063.  To get a detailed notice and claim form, members of the Class can visit the website www.PrimediaSettlement.com, email [email protected], or call 1-866-274-4004 toll free.

Members of the Class can also comment or object to the settlement, and can hire their own lawyer, at their own cost, to comment on the settlement in the manner explained in the detailed Notice.  The objection deadline is May 11, 2015.  Members of the Class are not required to hire their own attorney.  The Court appointed lawyers to represent the Class.  Members of the Class will not be responsible for paying these lawyers directly.  Instead, these lawyers will seek approval for a payment of fees and expenses from the settlement fund in an amount not to exceed $11 million. 

The Court will hold a settlement hearing at 2:00 p.m. on May 26, 2015, at the New Castle County Courthouse, 500 North King Street, Wilmington, Delaware 19801.  The Court will consider whether the settlement is fair, reasonable, and adequate.  If there are objections, the Court will consider them.  The Court will also decide how much to pay to plaintiff's counsel.  If the settlement is approved members of the Class will not be able to bring claims against the Defendants concerning the merger or other matters relating thereto ever again.

For more information visit www.PrimediaSettlement.com, email [email protected], or call 1-866-274-4004 toll free.

Press release contact:

James S. Notis
GARDY & NOTIS, LLP
126 East 56th Street, 8th Floor
New York, New York 10022
Tel: 212-905-0509
Email: [email protected]

SOURCE Gardy & Notis, LLP