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Shareholders Sue to Block TCI Settlement Payouts

January 28, 1998|Bloomberg News

WILMINGTON, Del. — Several Tele-Communications Inc. shareholders filed suit seeking to block the company from paying Chairman John Malone and heirs of founder Bob Magness $274 million to settle litigation over control of 76 million TCI shares.

At least six shareholders have filed suits in Delaware Chancery Court seeking to stop payments of $150 million to Malone and $124 million to the Magness estate. The payments are part of a settlement of a Colorado suit over sales of the cable TV company's stock. TCI is based in Englewood, Colo.

The settlement reached Jan. 7 ensures that the large block of Class A and super-voting stock remains in TCI's control, TCI officials have said. The shareholders contend the payments will unjustly enrich TCI insiders, waste company assets and strengthen Malone's control of TCI, court papers say.

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