John Malone's Liberty Media sued IAC and chairman Barry Diller (SA 100 #2) to block the planned break-up of the company into five separately-traded public entities. The WSJ says Diller's plan proposes ditching IAC's dual-class share structure for the four new companies, effectively reducing Liberty's voting stake in them from 61.7% to 29.9%.
Liberty holds a 30% stake in IAC but has nearly 62% voting power through super-voting shares. Diller holds a proxy to vote those shares for IAC as long as he remains CEO. Malone wants the same structure over the spun-out companies, and could challenge Diller's right to vote those shares.