Between December 4 and December 17, John Malone, a director and large shareholder of Discovery Communications, Inc.

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Between December 4 and December 17, John Malone, a director and large shareholder of Discovery Communications, Inc. ("Discovery"), engaged in sales of Discovery's "Series C" stock totaling 953,506 shares and purchases of Discovery's "Series A" stock totaling 632,700 shares. Discovery's Series A stock and Series C stock are different equity securities, are separately registered, and are traded separately on the NASDAQ stock exchange under the ticker symbols DISCA and DISCK, respectively. The principal difference between the two securities is that Series A stock comes with voting rights whereas Series C stock does not confer any voting rights. Series A stock and Series C stock are not convertible into each other. A shareholder brought a shareholder suit seeking disgorgement of the profits that Malone realized from these transactions. Explain whether the plaintiff should succeed?
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Smith and Robersons Business Law

ISBN: 978-1337094757

17th edition

Authors: Richard A. Mann, Barry S. Roberts

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