Hollinger Board to Settle Lawsuit

Former Secretary of State Henry A. Kissinger and other independent directors at Hollinger International Inc. agreed Tuesday to pay a $50-million settlement to the company to end shareholder claims that they stood by while ousted chief Conrad Black allegedly looted Hollinger.

The settlement, which requires court approval, comes after more than a year of legal wrangling at Hollinger, publisher of the Chicago Sun-Times and other newspapers. The media company last year sued Black and his associates for more than $425 million, contending that they diverted company funds for their own use.

Black has denied wrongdoing.

Hollinger International said the settlement would be paid to the company and funded by its insurance policies. The settlement contains no admission of wrongdoing or liability.

Institutional investor Cardinal Value Equity Partners, which brought the suit on behalf of shareholders in late 2003, said it was pleased with the settlement.

Hollinger ousted Black as chief executive in November 2003 and removed him as chairman in early 2004, after a board committee said he collected unauthorized payments.