TOLEDO, Ohio — Allan Block has filed an amended lawsuit against Block Communication, Inc, (BCI) from which he was fired as CEO on May 21 following an initial lawsuit to prevent the sale of the Toledo Blade and Pittsburgh's Post-Gazette.
The amended lawsuit argued Allan Block was unlawfully and improperly removed from his position as CEO. The suit included the addition of the following three claims:
- Breach of Contract - Employment Agreement
- Breach of Contract - Shareholders Agreement
- Breach of the Implied Covenant - Shareholders Agreement
The suit is seeking relief via the suit in the form of a trial by jury, in addition to the reinstatement of Allan Block as CEO and demanded access to books and records requested in his two inspection demands. He also is seeking damages, pre and post-judgment interest and relief in the form of attorney and other legal fees.
The initial lawsuit was seeking to hold other Block family members liable on four counts, including breach of contract, breach of the implied covenant, but also breach of contractual governance rights and breach of contractual inspection rights.
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A spokesperson for Allan Block argued in the following statement he was unlawfully removed from his position as CEO, and reiterated the efforts of his initial lawsuit, which claimed to be in the interest of preventing the sale of the Toledo Blade, among other BCI properties:
“Defendants unlawfully removed Allan Block as CEO in a transparent and self-interested attempt to facilitate the sale of Block Communications, which could trigger hundreds of job losses, as well as the potential shut down of the Pittsburgh Post-Gazette and Toledo Blade. Allan Block remains committed to opposing the efforts of his family members to further enrich themselves at the expense of local jobs and the communities that depend on local news coverage.”
Besides The Blade, which began daily publication in 1848, BCI owns Pittsburgh’s largest paper, the Post-Gazette; Louisville, Ky., TV station WDRB-TV; and Buckeye Broadband, a local cable and Internet provider.
In the injunction request, Allan Block claims that other board members have frozen him out of decisions on the company’s future and have not allowed him to be on the Special Strategic Committee, which negotiates possible sales. He also said the sale could result in the closure of The Blade and Post-Gazette.
The Blade and Post-Gazette combine to employ more than 1,000 people. The Blade is Toledo's oldest continually-run business.
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