CHICAGO, July 13 /PRNewswire-FirstCall/ -- Sun-Times Media Group, Inc. (the "Company") commented today on the conviction of four former Company officers on certain charges that they had defrauded the Company and its shareholders.
Cyrus F. Freidheim, Jr., President and Chief Executive Officer of the Company, said: "Today's verdict lifts the burden and uncertainty of the criminal trial off the shoulders of the Company and its employees and shareholders. Management is focused intensely on the future of our Company. There are great things ahead for the Company and the Chicago Sun-Times and our suburban newspapers."
Gordon A. Paris, Chairman of the Board of Directors Special Committee, said: "The criminal convictions represent another step toward justice and restitution for the Company and its shareholders. The Special Committee has cooperated fully with the government to date, and will continue to do so as the criminal process enters the forfeiture and sentencing phases. And with the criminal trial over, the Company now intends to proceed, as soon as it is able, with its civil suit against its controlling shareholders and certain former officers and directors." The Special Committee continues to pursue the Company's claims in the U.S. District Court for the Northern District of Illinois, and has already recovered approximately $185 million from previously announced judgments against, and settlements with, former officers and directors and outside counsel.
"While there are no assurances in any legal proceeding, we continue to be very confident that the Company will prevail in its civil suit," added Paris. Today's convictions, along with the sworn testimony and admissions in the criminal case, provide substantial additional evidence in support of the Company's claims.
About Sun-Times Media Group
Sun-Times Media Group, Inc. formerly known as Hollinger International, is dedicated to being the premier source of local news and information for the greater Chicago area. Its media properties include the Chicago Sun-Times and Suntimes.com as well as newspapers and Web sites serving 120 communities across Chicago.
Further information can be found at http://www.thesuntimesgroup.com/.
Cautionary Statement on Forward-Looking Statements
Certain statements made in this release are, and certain statements made from time-to-time by representatives of the Company may be, "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"). Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate, or imply future results, performance, or achievements, including potential outcomes or recoveries in litigation, and may contain the words "believe," "anticipate," "expect," "estimate," "project," "will be," "will continue," "will likely result," "we are confident," or similar words or phrases. Forward-looking statements involve risks and uncertainties, which may cause actual results to differ materially from the forward-looking statements. The risks and uncertainties of matters described herein include risks of adverse court rulings, defendants' insolvency, and the Company's inability to collect on any judgment it does obtain against a defendant. The risks and uncertainties are also detailed from time to time in reports filed by the Company with the Securities and Exchange Commission, including in the Company's Forms 10-K and 10-Q. New risk factors emerge from time to time, and it is not possible for management to predict all such risk factors, nor can it assess the impact of all such risk factors on the Company's business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results.
