Court Dismisses $1.25B Hollinger Lawsuit Against Black, Others

By: (AP) A federal judge on Friday dismissed newspaper publishing company Hollinger International Inc.'s lawsuit seeking $1.25 billion from ex-CEO Conrad Black and other former company executives.

Hollinger International had accused Black, former chief operating officer David Radler, and others of pocketing millions of dollars in non-competition fees and other payments when they allegedly sold newspapers for less than their market value.

The Chicago-based company said those actions constituted a violation of the Racketeer Influenced and Corrupt Organizations Act, or RICO. It sought to triple damages of more than $380 million because of the alleged racketeering, and also asked for $104 million in interest.

But U.S. District Judge Blanche Manning granted a motion by the defendants Friday to toss out the case.

Hollinger International, which owns the Chicago Sun-Times and The Jerusalem Post, told the judge it was considering whether to appeal.