Posted by chicagomedia.org on June 12, 2009 at 07:02:21:
Sun-Times, shareholders settle fraud suit
By: Lorene Yue
June 11, 2009
(Crain's) - A federal judge in Chicago on Thursday approved a $37.5-million settlement between Sun-Times Media Group Inc. and shareholders who brought a class-action lawsuit against the publishing company for securities fraud allegedly committed during Conrad Black's regime.
"It's an excellent result for the class, given the fact that three of the corporate defendants declared bankruptcy," John Kairis, lawyer for the plaintiffs, told Bloomberg News after the hearing. "There was a serious risk of no recovery at all."
The settlement dismisses claims that Mr. Black and other members of management misled investors about their compensation.
Mr. Black once controlled Hollinger International Inc., the prior name of the parent of the Chicago Sun-Times. He was convicted in 2007 of misappropriating company funds and obstruction of justice. The Supreme Court on Thursday denied his request for bail while he appeals his case.
The settlement applies to shareholders who bought stock between Aug. 13, 1999, and March 31, 2003.
Sun-Times Media Group filed for Chapter 11 bankruptcy protection in March.