By: Mike Robinson, Associated Press Writer (AP) A shareholders group sued press baron Conrad Black and newspaper holding company Hollinger International on Monday, accusing Black and other executives of failing "to disclose the transfer of millions of dollars of Hollinger funds into their own pockets."
The lawsuit was filed in U.S. District Court in Chicago by the Louisiana Teachers Retirement System. It alleges that improper deals were called to the attention of the board of directors but "the directors simply rubber stamped the transactions." The suit also seeks class-action status.
A spokesman for Black, Jim Badenhausen, and a spokeswoman for Hollinger International, Molly Morse, both said they had not yet seen the complaint and could not comment.
Besides Black, the suit named as defendants a number of individuals who have served as members of the Hollinger International board, former executive vice president F. David Radler and Toronto-based Hollinger Inc., the parent of Hollinger International.
Chicago-based Hollinger International owns The Daily Telegraph of London, the Chicago Sun-Times and the Jerusalem Post.
An attorney for the plaintiffs, John C. Kairis of Wilmington, Del., declined to comment.
A Hollinger International special committee is investigating allegations that Black and other top executives improperly siphoned more than $200 million from the company he controls.
Hollinger International has sued seeking to recover the money, saying the men received millions of dollars in unauthorized fees under agreements not to compete with companies that had purchased Hollinger assets. The suit also claims the defendants forced Hollinger International to pay excessive management fees.
The Louisiana teachers lawsuit cited the same excessive fees in asking the court to force the defendants to compensate shareholders for any money lost.
Black has been seeking to sell his stake in Hollinger International to Press Holdings Ltd., a holding company owned by Britain's Barclay brothers.
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