Liberty Media faces lawsuit

U.K. investor Klesch & Co. is hopping mad with Colorado, U.S.-based Liberty Media in the wake of the latter's full purchase of six German cable systems. Klesch claims it should have been a 50/50 deal.
August 2, 2001

Liberty Media’s recent purchase of six regional German cable franchises from Deutsche Telekom (for nearly US$5 billion) has led to a lawsuit launched by U.K. investor Klesch & Company. According to New York law firm Kasowitz, Benson, Torres & Friedman (representing Klesch), Klesch claims that the two companies had established a partnership to acquire a controlling interest in the German T.V. assets and is, therefore, entitled to a 50% stake, rather than the 25% share Liberty reportedly offered. Klesch is suing Liberty for fraud, and breach of contractual and fiduciary obligations.

A Liberty Media spokesperson acknowledged the lawsuit, but says the company has no comment at this time. Liberty holds interest in Discovery Communications (49%), Court TV (50%), STARZ! (100%) andE! Entertainment Television (10%), among other programming, communications, technology and

internet businesses.

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Jonathan Paul is a Toronto-based writer into creativity, content, advertising, tech, comics, video games, film, TV, time and space travel.