Accentuating the caveat emptor perspective with critical commentary on financial disclosure. I adopt a skeptical persona and look for chinks in the teflon coating of financial disclosure. My job is to identify financial warts. Perhaps a Black Swan. Disclosure: I do not hold positions in stocks mentioned for three trading days before or after blog post.
Wednesday, April 19, 2006
Hollinger Covers Conrad Black's Legal Fees
Conrad Black has a variety of lawsuits underway including a legal action against Hollinger International. Yet acccording to Canadian Business Hollinger is covering subsantial portions of Conrad Black's legal fees. Apparently most companies indemnify their senior people for certain legal expenses. The article points out that on March 6 Hollinger and Black reached an agreement that covers 75% of criminal legal costs and 50% of costs relating to SEC and other civil prosecutions. So how does the shareholder win? If Conrad Black is convicted the victim pays part of the legal fees. This one is beyond caveat emptor. www.canadianbusiness.com