Tri-Star Pictures Securities Litigation

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Following Tri-Star Pictures’ 1987 purchase of Coca-Cola’s Entertainment Business Sector, minority shareholders of Tri-Star alleged that Coca-Cola had used its large position in Tri-Star to engineer the transaction at an inflated price.

Retained by King & Spalding and by Morris, Nichols, Arsht & Tunnell

Following Tri-Star Pictures’ 1987 purchase of Coca-Cola’s Entertainment Business Sector, minority shareholders of Tri-Star alleged that Coca-Cola had used its large position in Tri-Star to engineer the transaction at an inflated price. Working with New York University finance professor William Silber, we analyzed the reactions of Tri-Star and Coca-Cola’s stock prices to the purchase announcements and reviewed comments by industry analysts at the time. Our analysis refuted plaintiffs’ contention that Tri-Star paid an inflated price for the Entertainment Business Sector. Following expert depositions, the case settled.