By: E&P Staff
Sun-Times Media Group and the accounting firm KPMG LLP have reached a settlement with Canadian and U.S. investors who alleged they were cheated while the publishing company was headed by Conrad Black and known as Hollinger international.
In a filing in federal court in Chicago, the parent of the Chicago Sun-Times the lawsuits brought said its insurers would pay $30 million into a settlement fund. KPMG will pay an additional $7.5 million.
Black, who was ousted as chairman and CEO of Hollinger in 2004, was convicted in July of mail fraud and obstruction of justice along with three other former top Hollinger executives. He is to be sentenced Nov. 30. Former Sun-Times Publisher F. David Radler, who reached a plea bargain with federal prosecutors in exchange for his testimony against Black, is set for sentencing Dec. 10.
Separately, the Ontario Securities Commission (OSC) postponed its hearing on Black and three other executives — Peter Atkinson, Jack Boultbee, and Mark Kipnis — until after the sentencing.
The four are accused by the OSC of violating several securities laws, and making misleading statements in Canadian regulatory filings.
The new hearing is scheduled for Dec. 11.