WMG shareholders investigation

LOOKING OUT FOR THE LITTLE GUY: Following that N.Y. Times report last Thursday (1/21) about a potential buyout of Warner Music, a San Diego-based group that calls itself the Shareholders Foundation has announced an investigation on behalf of investors in WMG. According to the release, an unnamed law firm is conducting an investigation as to “whether certain directors and officers at Warner Music Group or others will breach or breached their fiduciary duties in connection with the takeover rumors and in the event of a buyout." “A potential class action lawsuit would seek to maximize the amount of money and information WMG shareholders would receive in a buyout,” the release stated. WMG shares surged more than 23% on Friday from $4.72 to $6.12 after the Times story, though the stock price slid back to $5.70 during the first hour of Monday trading. This alleged investigation is revealed amid the backdrop of Edgar Bronfman Jr.’s conviction on insider trading charges dating back to 2002. (1/24a)