Hollinger seeks extra $1bn damages and accuses Black of ‘racketeering’

HOLLINGER INTERNATIONAL has accused ousted chief Conrad Black and others of a “pattern of racketeering” in a revised lawsuit over alleged financial wrongdoing, and the company said it will seek an additional $1 billion in damages.

The allegations are contained in an amended suit filed by a special committee of the newspaper publisher’s board in a federal court in Chicago. The company accused the defendants of “breaches of fiduciary duty” in connection with the sale of newspapers for less than fair value to private companies controlled by Lord Black and others.

The revised lawsuit is the latest development in a battle between Lord Black, who remains the company’s controlling shareholder, and the publisher of the Daily Telegraph and the Chicago Sun-Times. In January, Hollinger International sued Black and others for more than $200 million, contending they collected improper management fees.