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Ear to the Ground

‘Class Act’-ion at the L.A. Times

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Posted on Sep 17, 2008
Zell Chair
richsamuels.com

Sam Zell, shown here in 1995, is being sued by a group of reporters for what they say were “illegal and irresponsible actions and public statements.”

Former reporters from the L.A. Times and at least one current star columnist have filed a class-action suit against Sam Zell. The billionaire’s reign over the paper beginning in late 2007 has not been pretty, and the lawsuit contends that recent violations of federal financial rules have “diminished the value of the employee-owned company to benefit himself and his fellow board members.”


LA Observed:

I’m told that lawyers representing current and former Los Angeles Times newsroom staffers are filing a class-action federal lawsuit against Sam Zell and Tribune this morning in Los Angeles, alleging breaches of fiduciary duty, conflicts of interest and other violations of ERISA, the law that safeguards the proper handling of retirement benefits like pensions and trusts.

The plaintiffs include several familiar bylines and at least one current Times star. A team has been looking into Zell’s leveraged takeover of Tribune almost since he used employee money to get the company. Details to come.

The suit has been formally filed and the plaintiffs include Dan Neil, the paper’s Pulitzer-winning auto columnist; Jack Nelson, the much-honored retired Washington bureau chief; Henry Weinstein, the legal affairs writer who took a buyout to join the UC Irvine School of Law; Myron Levin, an investigative reporter who left recently; and Corie Brown, who most recently covered food and wine.

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By george from los angeles, September 18, 2008 at 12:26 am #
(Unregistered commenter)

you need to open your eyes and look at the whole economy.  the whole economy is in trouble.  stop pointing fingers. most business people make decisions to make money not lose money.  la times has not been the same for a long time. so stop looking for excuses.  lawsuits are a waste of time and money but go ahead and make your attorney rich.

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By ocbill, September 17, 2008 at 10:42 pm #
(Unregistered commenter)

Bravo!!!  It’s seems like the “big-boys” who rule from the shadows will finally have to do some accounting to an impartial jurist trying to ascertain the facts.  It’s clear from this long-time L.A.Times reader/subscriber that the beloved world-class newspaper I’d grown so used to receiving every morning has become a pale imitation of that once great, world-respected, news-breaking, investigative journalism personified in the L.A. Times.

The Times was sold to a corporate-raider-type person, who to afford the purchase larded the company and it’s employees with crushing debt; debt it must service every month.  Hence, we the subscriber/readers, get an increasingly disappearing “news” items on pages otherwise filled with advertisements; oh, that’s not counting the seemingly never-ending full pages of ads, on pages that were filled before with information about what is happening in our world, our state, region, etc.  Now we can find a plumber faster than we can find out if that crazy actor in Sacramento has vetoed the state budget!!!

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By rage, September 17, 2008 at 4:10 pm #
(Unregistered commenter)

I hope the writers win!

I am so sick of rich predatory pricks ruining the forth estate. They aren’t interested in informing people. They just want to roll a fortune out of controlling what we know. Half of them can’t tie their own shoes, but hire hirelings to fecklessly drive good news veins into the ground. And, for what? Because being able to brag that you made your latest fortune decimating a perfectly well functioning news and information source that has served the public reasonably well while providing people with income is not enough.

I maintain that the news need to be locally owned, not owned by humungous corporations who are only using these media outlest as a sales tools for their other product tenticles of their corporate beast. Or, worst, owned by coots like Zell and Murdoch who couldn’t care less about people who depend on them for honesty and integrity in reporting news and information. All the Tribune Company is to Zell is another carcass to be picked clean and bleached before he discards it. The WSJ is all the worse for the wear of being owned by booty-news vending Murdoch. These fiends need to be driven out of the news and information business.

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