iHeartMedia Sued Over Scheme to ‘Abscond’ With Analytics Company

An iHeartMedia Inc. unit was hit with a Delaware lawsuit claiming it forced through a buyout of partial subsidiary Unified Enterprises Corp. on terms that “wiped out” early investors in the marketing analytics company after it “went dark” during the early days of the Covid-19 pandemic.

The “secretive and improper process” allowed “the company’s controlling stockholder, one of its largest customers, to abscond with the company—and its proprietary technology,” the partly redacted Chancery Court complaint says. “In contrast, the company and its stockholders gained nothing.”

In addition to the iHeartMedia subsidiary, Broader Media LLC, the lawsuit targets four members of ...