Several former and current Los Angeles Times employees filed a lawsuit Tuesday against the newspaper’s corporate parent, Tribune Co., and its chief executive, Sam Zell, contending that reckless management is destroying the value of the company.
The suit, filed in U.S. District Court in Los Angeles, alleges that Zell and former Tribune CEO Dennis J. FitzSimons devised a plan to take the company private to enrich themselves to the detriment of employees. The lawsuit seeks class-action status on behalf of employees of The Times and Tribune., which owns a variety of newspapers, television stations and other assets including the Chicago Tribune, KTLA-TV Channel 5 and the Chicago Cubs baseball team.
Tribune’s roughly 18,000 employees became owners of the company when it was taken private in a transaction that saddled the business with $12.5-billion in debt and also created an employee stock ownership plan late last year.
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