Opinion ID: 437628
Heading Depth: 2
Heading Rank: 3

Heading: Income from Local Media

Text: 26 The proxy statement revealed that the Patriots' local media broadcasting contract extended through 1980, but it did not disclose that the terms of the contract had been renegotiated in the summer of 1976 so that they were more favorable to Patriots. As a result of the renegotiation, the 1976 income from the local media was approximately $75,000 higher than the 1975 income. Appellants argue that this increase in local broadcasting revenues was material and should have been disclosed, particularly in light of the fact that the proxy statement emphasized a $165,000 decline in revenues from national network broadcasting. The district court's finding that there was no evidence of concealment of any certain source of future revenue is clearly erroneous. We note that the $75,000 income increase for 1976 amounted to less than 1% of Patriots' 1975 operating revenue, and that such a small amount, considered by itself, might well be immaterial. But, because the district found that the proxy statement as a whole was no model of candor, and because the proxy statement suffered from the other specific defects we have noted, we think it best to allow the court to weigh the concealment of the local broadcasting revenue in the balances as it determines whether or not the proxy statement was materially misleading. We remand this claim to the district court.