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L.A. Times Staffers Sue Zell, Tribune

  • Variety, Wednesday, September 17, 2008 9:30 AM

Current and former Los Angeles Times employees are suing Sam Zell and the Tribune Co. over actions taken since Zell's leveraged buyout of Tribune Co. last year.

The complaint, filed Tuesday, alleges that the structure of the buyout -- executed through an Employee Stock Ownership Plan -- and Zell's conduct have diminished the company's value in order to benefit board members. The suit also alleges that Zell has de-funded employees retirement packages and raided the employee pension fund for more than $400 million.

Plaintiffs include Times auto critic Dan Neil and Jack Nelson, the paper's former Washington, D.C. bureau chief.

Read the whole story at Variety »

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