Hollinger Footing Conrad Black's Legal Bills

by: George Gutowski

Conrad Black has a variety of lawsuits underway including a legal action against Hollinger International Inc. 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.