Premiere faces legal action

By Robert Briel

The Munich law firm CLLB has started legal action against the pay-TV operator Premiere on behalf of two of its shareholders by filing complaints with the Landgericht Frankfurt.

The complaints are centred on false information about the number of paying subscribers given in the operator’s prospectuses of 2005 and 2007.
The company’s new CEO Mark Williams corrected the subscribers figures last October. Instead of the 3 million subscribers claimed, there were actually 2,411,000 subscriptions sold.

After the discovery of the inflated subscriber numbers, the Exchange Supervisory Authority BaFin (Bundesanstalt für Finanzdienstleistungsaufsicht) has also started to look into the matter.

“We will have a routine analysis in order to determine whether evidence of violations of securities law provisions,” said a person for BaFin to the German Digital Television news service.