Warner Music Group Corp. was sued by a shareholder who claims WMG's acquisition by Len Blavatnik's Access Industries last week undervalues the company, according to a Bloomberg report.
The complaint, filed by Barbara A. Varipapa, said the company's directors abandoned their duty to shareholders when they agreed to a deal that benefits Access to the "detriment" of the minority investors, according to the report. WMG's largest shareholders, who collectively own about 56 percent of the company, agreed to vote in favor of the transaction, the complaint says.
"The company's shares are already locked up in favor of the proposed transaction, rendering the minority shareholders' vote meaningless," it reads. Varipapa is seeking to represent all WMG shareholders in her attempt to block the deal, the report says.
A spokesman for WMG declined to comment on the complaint.