Hollinger International Makes Statement on Today's Ruling in U.S. District Court in Illinois - Does Not Deter Plans of Special Committee to Aggressively Pursue its Claims;

Ruling Today is Technical and Unrelated to Merit of Claims -



    CHICAGO, Oct. 8 /PRNewswire-FirstCall/ -- Hollinger International Inc.
 (NYSE:   HLR) (the "Company") announced today that a federal judge has
 dismissed, on technical grounds, its federal racketeering and state law breach
 of fiduciary duty claims against Hollinger Inc., Conrad Black, David Radler
 and others ("the Defendants") in the U.S. District Court for the Northern
 District of Illinois ("the Court").  Judge Blanche Manning ruled that the RICO
 claims are barred by section 1964(c) of the statute, which provides that "no
 person may rely upon any conduct that would have been actionable as fraud in
 the purchase of securities to establish" a RICO claim.  In rendering her
 opinion, Judge Manning ruled: "In holding that section 1964(c) precludes
 International's RICO claims, this Court is not making any determination as to
 validity of the fraudulent actions underlying these claims.  This decision
 simply holds that the claims are "actionable" as securities fraud."  Judge
 Manning ruled, however, that the Company has the right to pursue its state law
 breach of fiduciary duty claims, dismissing them "without prejudice."
     The Company said that its claims against the Defendants for their clear
 and repeated breaches of fiduciary duty to the Company will be pursued
 vigorously by the Special Committee of the Board of Directors ("the Special
 Committee").  The Special Committee will review its various alternatives for
 pursuing these claims, including a possible appeal of the Court's dismissal of
 the Company's claims under the Racketeering Influenced and Corrupt
 Organizations Act, 18 U.S.C. 1962 and 1964 ("RICO").   Judge Manning has set a
 conference for October 14, 2004 for the Company to advise the Court as to how
 the Special Committee proposes to proceed in pursuing it claims.
     Gordon A. Paris, Interim Chairman, President and Chief Executive Officer
 of the Company, and Chairman of the Special Committee, said: "The Court's
 dismissal of the Special Committee's claims on technical grounds does not in
 any way diminish the strength or merits of the breach of fiduciary duty claims
 that have been asserted against these Defendants. In the interest of the
 Company and its shareholders, the Special Committee will pursue these claims
 aggressively and seek restitution for funds diverted by the Defendants from
 the Company."
     The Special Committee was created to investigate allegations raised by
 certain of the Company's shareholders and any other matters uncovered in the
 course of its work.  Consistent with the terms of the Consent Judgment entered
 into by the Company and the U.S. Securities and Exchange Commission earlier
 this year, the Special Committee filed with the Court on August 30, 2004 its
 Report of the findings of its investigation.  The 513-page Report chronicles
 the methods by which certain directors and former directors and officers as
 well as the Company's controlling shareholder and its affiliated companies
 transferred more than $400 million to themselves over the past seven years.
 
     Hollinger International Inc. is a newspaper publisher with English-
 language newspapers in North America, Israel and Canada. Its assets include
 The Chicago Sun-Times and a large number of community newspapers in the
 Chicago area, The Jerusalem Post and The International Jerusalem Post in
 Israel, several local newspapers in Canada, a portfolio of new media
 investments, and a variety of other assets.
 
     Cautionary Statement on Forward-Looking Statements: Certain statements
 made in this release are "forward-looking statements" within the meaning of
 the Private Securities Litigation Reform Act of 1995 (the "Act"). Forward-
 looking statements include, without limitation, any statement that may
 predict, forecast, indicate or imply future results, performance or
 achievements, and may contain the words "believe," "anticipate," "expect,"
 "estimate," "project, "will be," "will continue," "will likely result," "is
 subject to," or similar words or phrases. Forward-looking statements involve
 risks and uncertainties, which may cause actual results to differ materially
 from the forward-looking statements. The risks and uncertainties are detailed
 from time to time in reports filed by Hollinger International with the
 Securities and Exchange Commission, including in its Forms 10 K and 10 Q. New
 risk factors emerge from time to time and it is not possible for management to
 predict all such risk factors, nor can it assess the impact of all such risk
 factors on the Company's business or the extent to which any factor, or
 combination of factors, may cause actual results to differ materially from
 those contained in any forward-looking statements. Given these risks and
 uncertainties, investors should not place undue reliance on forward-looking
 statements as a prediction of actual results.
 
      Contacts:
      US/Canada Media
      Molly Morse
      Kekst and Company
      212-521-4826
      molly-morse@kekst.com
 
      UK Media
      Jeremy Fielding
      Kekst and Company
      jeremy-fielding@kekst.com
      1-212-521-4825
 
 

SOURCE Hollinger International Inc.

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