Caribevisión wins a US$58 million unanimous verdict against América TeVe, Omar Romay and other Romay-controlled entities

A jury this week awarded Caribevisión Holdings, Inc., a US$58 Million unanimous verdict against América TeVe, its founder Omar Romay, and other Romay-controlled entities for failing to act with good faith and fair dealing towards his partners, breach of contract, and shareholder oppression. In addition, the Court also granted, Caribevisión’s request to dissolve the Joint Venture between it and América TeVe in 2010, paving the way for Caribevisión to assume full control of the Joint Venture’s seven TV stations, which include Miami’s Channel 41 and 48 as well as stations in New York and Puerto Rico. Caribevisión is led by industry leaders, including its CEO, Carlos Vasallo, who also owns movie channels, Cine Estelar and Cine Nostalgia, and the leading portfolio of Spanish-language movies. Its principal investors include Alejandro Burillo Azcárraga who is the former president of Televisa and owner of the Mexican conglomerate Grupo Pegaso, Emilio Braun Burillo, owner of Grupo Brabur and several Miami-based funds, and Telecinco, one of Spain’s leading TV networks, which is owned in part by a group led by former ItalianPrimer Minister, Silvio Berlusconi.In 2010, Caribevisión contributed six TV stations, and Romay contributed one, and formed a 50/50 Joint Venture company, to be led by Romay as CEO. Soon after the Joint Venture started, Romay began to take a series of actions designed to dilute the percentage interests of Caribevisión to approximately 20% and take control of the Board of Directors, prompting Caribevisión to file suit.After the verdict, Caribevisión’s corporate lawyer, Marcell Felipe stated “this is a great victory for our judicial system. In our opinion, Mr. Romay acted in total disregard for the interests of the company, its partners and its employees, with the sole intent of benefiting himself. Today, thanks to the efforts of our litigation team led by Omar Ortega, Rey Dorta and Nicole Ruesca, Mr. Romay was held accountable for his actions.”As to the options available to Caribevisión, its CEO, Carlos Vasallo, indicated, that “it is unlikely Mr. Romay will have the ability to pay for this judgment, which will leave us only with one option, to take control of the TV stations, and do what we do best: make it a successful business”.