A Collaboration with the University of Pittsburgh

Hollinger files second misconduct suit against former CEO Conrad Black

[JURIST] Hollinger Inc. [corporate website], the Canadian holding company with an interest in the newspaper publisher Hollinger International [corporate website], filed a lawsuit Thursday in an Ontario court against former CEO Conrad Black [CBC profile; JURIST news archive] and other former Hollinger associates requesting damages in excess of $700 million. The suit also names as defendants the Ravelston Corp. Ltd., the Black-controlled holding company that owns a majority of Hollinger, Inc. stock, as well as Black's wife. Hollinger said in a press release:

Hollinger is asking the Ontario Superior Court of Justice for 17 distinct forms of relief, including: $500 million in damages for breach of contract, conspiracy, negligence, breach of fiduciary duty, unjust enrichment and unlawful interference with the Hollinger Group's economic interest; additional damages totaling approximately $200 million; contribution and indemnity with respect to any judgment or order obtained against the Hollinger Group from certain legal proceedings; relief under the Canada Business Corporations Act, an order for compensation for oppressive conduct, and; a minimum of $5 million in punitive or exemplary damages.
Hollinger also filed a counterclaim against Hollinger International [press release], alleging a scheme by Black to gain control of Hollinger Inc. by "strip[ping] Hollinger of assets by acquiring them at prices it knew to be far below fair value."

Hollinger, Inc. filed a similar civil lawsuit [JURIST report; press release] against Black in March, 2005. Black also faces criminal fraud charges [indictment, PDF] in connection with the $2.1 billion sale of several hundred Canadian newspapers and alleged abuse of corporate perquisites at Hollinger. He has pleaded not guilty [JURIST report] and his trial is set to begin in federal court in Chicago next March. CTV has more.

About Paper Chase

Paper Chase is JURIST's real-time legal news service, powered by a team of 30 law student reporters and editors led by law professor Bernard Hibbitts at the University of Pittsburgh School of Law. As an educational service, Paper Chase is dedicated to presenting important legal news and materials rapidly, objectively and intelligibly in an accessible format.

© Copyright JURIST Legal News and Research Services, Inc., 2013.