Alden Global Capital, LLC Announces That Affiliate Has Filed a Lawsuit Seeking To Prevent Lee Enterprises from Disenfranchising Shareholders

Rhea-AI Summary

Alden Global Capital has filed a lawsuit against Lee Enterprises to challenge the upcoming director election, alleging that Lee is disenfranchising shareholders by manipulating the voting process. The firm claims that Lee is using an illegal voting standard to ensure the reelection of directors Mary Junck and Herbert Moloney, despite the company's declining performance. Alden argues that shareholders deserve a fair election and is committed to ensuring that the board is accountable to investors. The stakes are high as these directors are up for reelection every three years.

Positive

• Alden Global Capital is actively seeking to increase shareholder involvement in board elections.
• The lawsuit highlights potential shareholder discontent with current board members.

Negative

• Lee's alleged manipulation of the voting process could lead to further shareholder dissatisfaction.
• The company's downward spiral and declining journalism quality could harm its reputation and financial performance.

WEST PALM BEACH, Fla.--(BUSINESS WIRE)-- Alden Global Capital, LLC announced that its affiliate filed a lawsuit seeking to prevent Lee from brazenly disenfranchising shareholders by rigging the upcoming director election to guarantee the re-election of entrenched directors who have profited substantially even while the company is in a downward spiral and its journalism is suffering. After announcing in December 2021 that no valid stockholder nominations had been received, and winning a court ruling on that point, Lee is now using an illegal voting standard that prevents shareholders from meaningfully participating if they wish to vote against two deeply entrenched directors -- Mary Junck and Herbert Moloney. This year's election is of particular importance since these directors are only up every three years.

Lee’s nominees are clearly the only candidates up for election, but the Lee Board is falsely claiming that this year’s election is ‘contested' in order to use an improper 'plurality' voting standard -- ensuring re-election for nominees who receive even as little as a single vote in their favor. Alden remains committed to ensuring Lee's shareholders have the opportunity they deserve to decide if board members should be protected at all cost or forced out for doing a bad job.

With this latest brazen act, Lee’s self-interested Board continues to prioritize themselves over shareholders who have the right to elect directors. Alden’s lawsuit is aimed at ensuring that it is Lee’s shareholders who elect Lee’s directors, not Lee’s Board.

CERTAIN INFORMATION CONCERNING THE PARTICIPANTS

Alden Global Capital, LLC, together with the other participants named herein (collectively the “Stockholder Group”), has filed a preliminary proxy statement and accompanying BLUE proxy card with the Securities and Exchange Commission (“SEC”) to be used to solicit votes in connection with the 2022 annual meeting of stockholders of Lee Enterprises, Incorporated (the “Company”).

THE STOCKHOLDER GROUP STRONGLY ADVISES ALL STOCKHOLDERS OF THE COMPANY TO READ THE PROXY STATEMENT AND OTHER PROXY MATERIALS AS THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. SUCH PROXY MATERIALS WILL BE AVAILABLE AT NO CHARGE ON THE SEC'S WEB SITE AT HTTP://WWW.SEC.GOV. IN ADDITION, THE PARTICIPANTS IN THIS PROXY SOLICITATION WILL PROVIDE COPIES OF THE PROXY STATEMENT WITHOUT CHARGE, WHEN AVAILABLE, UPON REQUEST. REQUESTS FOR COPIES SHOULD BE DIRECTED TO THE PARTICIPANTS' PROXY SOLICITOR.

The participants in the solicitation are anticipated to be Strategic Investment Opportunities LLC (“Opportunities”), MNG Enterprises, Inc. (“MNG Enterprises”), MNG Investment Holdings, LLC (“MNG Holdings”), Alden Global Capital LLC (“Alden”) and Heath Freeman.

As of the date hereof, Opportunities directly beneficially owns 371,117 shares of Common Stock. MNG Holdings, as the managing member of Opportunities, may be deemed the beneficial owner of the 371,117 shares of Common Stock owned directly by Opportunities. MNG Enterprises, as the sole member of MNG Holdings, may be deemed the beneficial holder of the 371,117 shares of Common Stock owned directly by Opportunities. Alden, as the investment manager of funds that collectively hold a majority voting interest in MNG Enterprises, may be deemed the beneficial owner of the 371,117 shares of Common Stock owned directly by Opportunities. Mr. Freeman, as the President of Alden, may be deemed the beneficial owner of the 371,117 shares of Common Stock owned directly by Opportunities.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220222006050/en/

Investors

Innisfree M&A Incorporated

Scott Winter / Jonathan Salzberger / Gabrielle Wolf

(212) 750-5833



Media

Cameron Gurley

(646) 660-8642

cameron@goldin.com

Source: Alden Global Capital, LLC

FAQ

What lawsuit did Alden Global Capital file against Lee Enterprises?

Alden Global Capital filed a lawsuit seeking to prevent Lee Enterprises from manipulating the director election process to ensure the reelection of current directors.

Who are the directors involved in the Lee Enterprises election controversy?

The directors involved are Mary Junck and Herbert Moloney, who are facing reelection.

What is the significance of the upcoming election for Lee Enterprises?

The upcoming election is crucial as it occurs every three years, impacting long-term governance and accountability.

How is Lee Enterprises allegedly disenfranchising shareholders?

Lee is accused of using an improper voting standard that limits meaningful shareholder participation in the election.

When did Alden Global Capital express its concerns regarding Lee's election process?

Alden expressed its concerns publicly following Lee's announcement in December 2021 about no valid stockholder nominations.