Family Is Embroiled In Suit Over Control of the 'Pittsburgh Post-Gazette' and 'Toledo Blade'

The family that owns Block Communications Inc. (BCI), publisher of the Pittsburgh Post-Gazette and the Toledo Blade, is airing some of its internal squabbling in court.  

Allen Block, CEO and board member of BCI, filed suit, charging that his twin brother John Block is engaged in an “ill conceived, resentment fueled” plan to sell the company.  

The suit filed with the Lucas County Court of Common Pleas also names several other family members and trusts. 

Allen Block charges that the defendants formed a special committee in January to explore a sale, excluding him. 

This “reduced – indeed, effectively eliminated – Allan's right to have a direct and leading role in BCI's strategic decisions by excluding him from one of the most major decisions to ever face the Company in its existence: a potential sale of the Company itself,” the suit alleges. 

advertisement

advertisement

Block demands that the defendants be preliminarily enjoined from selling the company, that he be seated on the special strategic committee and that he receive indemnification. 

Allan Block issued a statement to the Post-Gazette that he is “trying to stop self-interested family members from pursuing a fire sale of Block Communications that could lead to hundreds of job losses in the local Toledo and Pittsburgh communities, as well as the potential shutdown of the Pittsburgh Post-Gazette and Toledo Blade." 

John Block told the Post-Gazette, "It's my goal to remain in journalism for as long as I'm alive. I'm not retiring. I'm lucky and healthy enough to support something that's in short supply. We need more – not less." 

Both brothers own 25% shares in the company, the other 50% belonging to trusts benefitting family members.  

BCI was founded by Paul Block, grandfather of Allan and John, almost 125 years ago.

 

Next story loading loading..