EM.TV Investors Take Company To Court
Munich officials are looking into several lawsuits that have been brought against kid media and merchandising company EM.TV. One case was filed by the German shareholders association DSW, which claims that EM.TV executives repeatedly held back information about their financial problems. EM.TV's financial concerns started when they first announced the cutting of revenues due to accounting errors in the acquisition of the Jim Henson Co. and Formula One racing. On December 1, the company then announced that it was slashing its earnings forecast from DM525 million ($238.4 million) to DM50 million ($22.7 million) due to a "narrow profit margin." The announcement of the lawsuits on Friday, December 8 slashed what gains the company's stock had made earlier in the day. The stock closed out almost where it had started at 7.18 euros ($6.38).