A former Hollinger official who was fired last month after the board of directors found that executives took some $32 million in illicit payments is suing the company, saying he was improperly dismissed.
Jack Boultbee, former executive vice president of Hollinger International, has launched a legal fight in a Canadian court and is seeking more than $1 million in damages, according to Boultbee’s attorney.
“The essence of the legal action is that Mr. Boultbee was told to resign or be fired,” said Don Jack, of the Toronto-based law firm McDonald & Hayden. “He’s suffered very significant damages.”
Jack said that Hollinger has prevented Boultbee from exercising vested stock options.
Hollinger let Boultbee go last month “after failing to reach agreement with him on several matters,” according to a company statement.
Hollinger International has said that Boultbee received $600,000 in so-called non-compete payments that were either not authorized or not disclosed properly.
The company has asked him to return the money, but Boultbee has refused.
“His position was that it was authorized,” Jack said.
At the time of Boultbee’s exit, Conrad Black, who controls Hollinger through his ownership of super voting shares, stepped down as CEO. Black and other execs have promised to pay back some $32 million in payments.