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Judge rules for McClatchy company in trust-fund lawsuit

Published 01/17/2018, 07:01 PM
Updated 01/17/2018, 07:01 PM
© Reuters.  Judge rules for McClatchy company in trust-fund lawsuit
  • A judge has found for officials at McClatchy (NYSE:MNI), including its former CEO, who were charged with mismanaging funds.
  • The suit was brought by Carlos McClatchy, beneficiary to a trust fund set up by the granddaughter of the company's founder that slid in value after McClatchy bought Knight Ridder in 2006 for $4.5B.
  • That meant the end to millions of dollars in dividends for beneficiaries like Carlos McClatchy.
  • But the judge ruled that company officials including former CEO Gary Pruitt were obligated to keep company stock rather than selling it for other investments, in order to preserve family control, and that buying Knight Ridder may have allowed the company to survive the recession.
  • Now read: Potomac Bancshares declares
  • Now read: Potomac Bancshares declares $0.07 dividend
  • .07 dividend


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