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Sun-Times Media Group Settling Class Action Suits

Magazine article Editor & Publisher

Sun-Times Media Group Settling Class Action Suits

Article excerpt

Sun-Times Media Group Inc. (STMG) said late Tuesday that it had entered into an agreement to settle the securities class-action lawsuits in the U.S. and Canada that accused the publishing company formerly known as Hollinger International of making misleading disclosures and omissions about "non-competition" payments, and paying excessive management fees.

The settlement will be funded entirely by $30 million in proceeds from STMG's insurance policies, the company said.

The lawsuits, which were consolidated in U.S. District Court in Chicago, were filed against the company, several former directors and officers, some affiliated companies, and STMG's auditor KPMG LLP.

The lawsuits accused the defendants of violating securities laws in the U.S. and Canada. Former Hollinger International Chairman Conrad Black was convicted last month on U.S. federal fraud charges he improperly pocketed phony non-compete fees in the sale of three groups of community newspapers. A jury found him not guilty of fraudulently taking non-compete fees in several other sales. Black faces sentencing in November.

"The settlement includes no admission of liability by the company or any of the settling defendants and the company continues to deny any such liability or damages," STMG said in a statement. …

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