Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Tribune Co. to Drop Certain Clawback Lawsuits Against Executives
Author: Joel R. Glucksman
Date: February 7, 2013
Key Contacts
Back
Clawback Lawsuits to be Dropped, but NOT for all Executives
The Tribune Co., owner of several notable newspapers and television stations, announced that it plans to drop some lawsuits against the executives that it asserts contributed to its bankruptcy.
Following upon its recent emergence from bankruptcy protection, the company said it plans to drop the majority of its 170 lawsuits against senior media executives who profited from the privatization of Tribune Co. The leveraged buyout undertaken by Sam Zell in 2007 eventually forced the Tribune Co. to file for Chapter 11 protection under bankruptcy law. Following the company’s collapse, it sued several executives whom it argued had misinterpreted key facts in order to complete the sale with Zell.
The Tribune Co. relied on a report written by bankruptcy examiner Kenneth Klee, who was commissioned by the court to help the company navigate its proceedings. In the report, Klee wrote that the company’s executives were unrealistic when they calculated the company’s 10-year projections, and that they also failed to inform the board of the risks involved with the sale, according to the Chicago Tribune. The report also noted that it was likely executives had engaged in “intentional fraudulent conveyance” that not only left the company facing insolvency, but may have also been intentionally done in order to “hinder, delay or defraud” creditors, the Tribune added. In response to the report, many creditors – such as Aurelius Capital Management – campaigned for larger settlements, and the company itself sought to claw back tens of millions in payments executives had received following the close of the deal.
Not all lawsuits will be dropped, however, and many high-level executives will continue to face clawback litigation. This includes the lawsuit against former Chief Executive Dennis FitzSimons, who pocketed $47 million out of the deal, according to Dow Jones Newswires.
The Tribune Co. emerged from bankruptcy on December 31, nearly four years after its initial filing.
- Practices: Bankruptcy & Creditors' Rights, Corporate Transactions & Business, Bankruptcy Litigation
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Why Compliance Monitoring Matters for NY and NJ Businesses
Compliance programs are no longer judged by how they look on paper, but by how they function in the real world. Compliance monitoring is the ongoing process of reviewing, testing, and evaluating whether policies, procedures, and controls are being followed—and whether they are actually working. What Is Compliance Monitoring? In today’s heightened regulatory environment, compliance […]
Author: Dan Brecher
When Are New Jersey Business Owners Personally Liable for Corporate Debt?
New Jersey personal guaranty liability is a critical issue for business owners who regularly sign contracts on behalf of their companies. A recent New Jersey Supreme Court decision provides valuable guidance on when a business owner can be held personally responsible for a company’s debt. Under the Court’s decision in Extech Building Materials, Inc. v. […]
Author: Charles H. Friedrich
Commercial Real Estate Trends to Watch in 2026
Commercial real estate trends in 2026 are being shaped by shifting economic conditions, technological innovation, and evolving tenant demands. As the market adjusts to changing interest rates, capital flows, and workplace models, investors, owners, tenants, and developers must understand how these trends are influencing opportunities and risk in the year ahead. Overall Outlook for Commercial […]
Author: Michael J. Willner
One Big Beautiful Bill: New Tip Income Tax Rules Employers & Workers Need to Know
Part 2 – Tips Excluded from Income Certain employees and independent contractors may be eligible to deduct tips from their income for tax years 2025 through 2028 under provisions included in the One Big Beautiful Bill. The deduction is capped at $25,000 per year and begins to phase out at $150,000 of modified adjusted gross […]
Author: Scott H. Novak
One Big Beautiful Bill: New Overtime Tax Rules Employers and Employees Need to Know
Part 1 – Overtime Pay and Income Tax Treatment Overview This Firm Insights post summarizes one provision of the “One Big Beautiful Bill” related to the tax treatment of overtime compensation and related employer wage reporting obligations. Overtime Pay and Employee Tax Treatment The Fair Labor Standards Act (FLSA) generally requires that overtime be paid […]
Author: Scott H. Novak
New York’s FAIR Business Practices Act: What the New Consumer Protection Measure Means for Your Business
In 2025, New York enacted one of the most consequential updates to its consumer protection framework in decades. The Fostering Affordability and Integrity through Reasonable Business Practices Act (FAIR Act) significantly expands the scope and strength of New York’s long-standing consumer protection statute, General Business Law § 349, and alters the compliance landscape for New York […]
Author: Dan Brecher
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.