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Robbins Umeda LLP Announces an Investigation of Cablevision Systems Corporation

Wednesday, February 01, 2012 1:29 PM

Shareholder rights firm Robbins Umeda LLP is investigating possible breaches of fiduciary duty and other violations of the law by certain officers and directors at Cablevision Systems Corporation (NYSE: CVC). Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Gregory E. Del Gaizo at (800) 350-6003, info@robbinsumeda.com, or via the shareholder information form on the firm's website.

Robbins Umeda LLP's investigation focuses on whether officials at Cablevision breached their fiduciary duties to shareholders and maintained inadequate controls to the detriment of the company and investors. The firm is investigating allegations that members of the Board of Directors issued improper statements concealing the fact that: (1) Cablevision was experiencing higher retention and advertising costs; and that (2) the company was losing more video customers than expected, especially in its main service areas, due to increased competition.

Cablevision investors were first alerted to the true condition of the company's business on August 9, 2011, when Cablevision announced during its second quarter 2011 earnings call that the company lost 23,000 video subscribers. On this news, the company's stock fell $2.50 per share or 13%, to close at just $17.02. Then, on October 28, 2011, Cablevision revealed that an additional 19,000 video subscribers had canceled their service, and that the company was performing below expectations. On this news, the company's stock value declined an additional 13%. Since these facts have emerged, Cablevision has increasingly become the focus of costly public and legal scrutiny, while deficient controls at the company continue to undermine Cablevision's intrinsic value and future business prospects.

Robbins Umeda LLP highlights that Cablevision shareholders have the option to file a derivative action to hold those officers and directors accountable for damaging the company. Remedies commonly sought in derivative actions include corporate governance reforms designed to prevent future misconduct, removal of officers or directors whose misconduct injured the corporation, and monetary payments in the form of damages and disgorgement of ill-gotten gains.

Robbins Umeda LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. For more information, please go to http://www.robbinsumeda.com.

Press release link: http://www.robbinsumeda.com/shareholders-rights-blog/cablevision-systems-corp/

Attorney Advertising. Past results do not guarantee a similar outcome.

(Source: Business Wire )
(Source: Quotemedia)

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