Hemisphere Media Holdings Stockholders Settlement

If you were a record holder or beneficial owner of Hemisphere Media Group Inc. common stock whose shares were exchanged for $7.00 per share in cash on September 13, 2022, you may be eligible to claim a portion of a class action settlement.

Hemisphere Media Group, Inc. has agreed to pay $15,000,000 to settle a class action lawsuit for alleged breaches of fiduciary duties related to a take-private transaction.

Who are the class members?

The class members include:

• All record holders and beneficial owners of Hemisphere common stock whose shares were exchanged for $7.00 per share in cash at the closing of the take-private transaction on September 13, 2022
• Their heirs, successors in interest, successors, transferees, and assigns

How much can class members get?

The settlement provides a $15,000,000 fund to be distributed among eligible class members. The distribution will be on a pro rata basis, meaning each member's share will depend on the number of eligible shares they held.

For example, if the net settlement fund is $14,000,000 after expenses, and there are 18.5 million eligible shares, the per-share recovery would be approximately $0.76. This is calculated by dividing the net settlement fund by the total number of eligible shares.

Pro Rata Distribution: Each eligible class member will receive a payment based on the number of shares they held. The formula is: (Number of Eligible Shares) x (Per-Share Recovery).

Eligible class members will receive their distribution automatically. Payments will be made in the same manner as the transaction consideration was received, typically through brokerage accounts.

$15 Million settlement fund

The settlement fund of $15,000,000 will cover:

• Payments to eligible class members.
• Administrative costs and taxes.
• Attorneys' fees and expenses, not exceeding 25% of the settlement fund.

Important dates

• Fairness Hearing: December 13, 2024
• Deadline to File a Claim: Not applicable as no action is needed.

When is the Hemisphere Media Group Settlement payout date?

The court will hold a fairness hearing on December 13, 2024, to determine whether to approve the settlement. If approved, payments will be distributed to eligible class members after any appeals are resolved.

Why is there a class action settlement?

The lawsuit alleged breaches of fiduciary duties by Hemisphere's controllers and directors, claiming they pursued a transaction at a depressed stock price. The settlement avoids the uncertainty and expense of further litigation.