Minority Bellator Shareholder Sues Viacom Alleging Diverted Income

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This week Koloni, Reklam, Sanayi, Tigater LTD, a minority shareholder of Bellator Sport Worldwide LLC, sued the company’s majority owner in the Superior Court of California.

The lawsuit alleges that since December 2011, when Viacom purchased a controlling interest in the company, the media giant has failed to provide the plaintiff with proper financial statements and further that they diverted “income to its affiliated companies while purposefully obscuring the terms of these (in cage) advertising contracts.” and that the purpose of such an action was to allow Viacom to retain all revenues within its media empire while depriving Bellator and its minority shareholders of “significant revenue“.  The allegations have not yet been proven in court.  At this stage the lawsuit alleges the following causes of action –

  • Breach of Contract
  • Breach of Fiduciary Duty
  • Breach of the Covenant of Good Faith and Fair Dealing
  • Unjust Enrichment

The lawsuit seeks damages, potential judicial dissolution or other equitable relief.

A full copy of the Plaintiff’s pleadings can be found here.

 

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