01/20/2004 1:00AM

TVG and Youbet settle suit


Youbet.com and Television Games Network, which owns part of Youbet, have reached an agreement to settle a lawsuit in which TVG alleged that Youbet had failed to inform its shareholders fully about proposed structural changes, according to Youbet.

Youbet said in court documents filed with a judge in Delaware last Wednesday that the two companies had reached an agreement in principle and would work out the final document within two weeks. Details about the agreement were not available.

TVG filed the suit after Youbet released a proxy statement to shareholders last year outlining changes to its board of directors and voting procedures. TVG alleged that Youbet did not include information that would account for TVG exercising warrants to purchase a majority share in Youbet. The Delaware court sided with TVG in September, forcing Youbet to delay its annual shareholders' meeting and draft a new proxy statement.