Hollinger Inc sues former bosses

Media group Hollinger Inc has sued a number of companies and former directors for around $550m.

The actions against Ravelston Corporation, Ravelston Management Inc, Moffatt Management Inc, and Black-Amiel Management Inc, as well as former company bosses including media baron Conrad Black, were lodged yesterday in Ontario's superior court in Canada.

The claims also sought reimbursement of sums owed to Hollinger by Ravelston defendants of about $86m, plus accrued interest and costs.

Damages sought include management fees and non-competition payments misappropriated to Ravelston and individual defendants since 1998. Other bases for claims include diversion of corporate opportunities, breach of fiduciary duties and oppression.

The Ravelston Corporation said in a statement that the lawsuit was 'simply rehashing litigation previously commenced by others. We have made clear that we believe those actions are without merit and that we look forward to the opportunity to try them in a court of law.'

Earlier this month a US judge removed obstacles to Chicago-based Hollinger International's suit against beleaguered tycoon Conrad Black, suing for damages amid alleged looting while he was chief executive.

Hollinger's principal asset is its interest in Hollinger International, which is a newspaper publisher, the assets of which include the Chicago Sun-Times, a large number of community newspapers in the Chicago area and a portfolio of news media investments.

Canadian-born Black was ousted last year as chairman of Hollinger International, amid allegations, which he denies, that he and an associate looted the company of $380m during their tenures as chief executive and chief financial officer.

US regulators have charged Black and his former deputy, David Radler, with securities fraud in connection with alleged wrongdoing at Hollinger International. The US Securities and Exchange Commission accused Black and Radler of bilking the group of at least $85m.

Black has been trying to gain total control of the Toronto-based holding company Hollinger Inc to take it private. Hollinger is already 78% owned by Black through Ravelston.  In turn, Hollinger Inc controls 18% of the shares and 68% of the voting rights of Hollinger International.