Publishing Chairman Ousted After Suit Filed

NEW YORK — Newspaper publisher Hollinger International Inc. removed Conrad Black as its chairman Saturday, hours after announcing a lawsuit alleging that he and an associate improperly took more than $200 million from the company.

Hollinger International publishes newspapers including the Chicago Sun-Times and London’s Daily Telegraph. Black is the company’s controlling shareholder.

The lawsuit was filed in federal court in New York on Friday but announced by the company Saturday. It accuses Black and David Radler, the company’s former president and chief operating officer, of “repeated and systematic schemes to divert corporate assets and opportunities to themselves.”

Hollinger International is seeking to recover the money, which includes fees paid to both men in asset sales. It also wants the return of fees paid to Hollinger International’s Toronto-based parent company Hollinger Inc., which is controlled by Black, as well as two privately held companies also controlled by Black.

The lawsuit accuses Black and Radler of altering the company’s books to provide a pretext for the payments or to conceal their actions. It also accused them of lying in public and failing to disclose important information to shareholders and the company’s independent directors.

The lawsuit marks the latest escalation of tensions between the company and Black, who was forced out as chief executive in November following a shareholder revolt over millions in fees that he and other senior executives collected. Shareholders say the money should have gone straight to the company.

Black is at odds with the company over $7.2 million in fees that he agreed to repay in a November deal. He didn’t make the first payment last year.

The lawsuit was based on information uncovered by a special committee formed in June to investigate shareholder concerns, principally over the “non-compete” payments made to executives as well as management fees to entities controlled by Black.