TEGNA's Largest Active Shareholder Commissions Independent Study On The Company's DE&I Issues

Rhea-AI Summary

Standard General L.P., TEGNA's largest equity holder, released an independent report by Quest Research & Investigations detailing allegations of discrimination within TEGNA. Following reports of racial insensitivity involving TEGNA's CEO, Standard General urged the Board to conduct an independent investigation, which was not performed. The report highlights systemic discriminatory practices at various levels within the company, contradicting TEGNA's claims of effective DE&I initiatives. Standard General hopes this report aids shareholders in making informed decisions regarding TEGNA's future leadership.

Positive

• Standard General's independent report could encourage TEGNA to address discrimination issues, potentially leading to improvements in corporate governance.
• Increased scrutiny on TEGNA's DE&I practices brings attention to necessary changes, which may enhance the company's public image over time.

Negative

• Allegations of systemic discrimination could severely damage TEGNA's reputation and employee morale, impacting overall performance and stock value.
• Failure to conduct a thorough investigation may lead to shareholder dissatisfaction and erode trust in TEGNA's management.

NEW YORK, April 29, 2021 /PRNewswire/ -- Standard General L.P., the largest equity holder of TEGNA Inc. ("TEGNA" or the "Company") (NYSE: TGNA), today released an independent investigative report done by private investigations firm, Quest Research & Investigations (QRI), outlining multiple first party allegations of discriminatory practices within TEGNA. In conjunction with the report, now live on tomorrowstegna.com, Standard General has issued the following statement:

Dear Fellow TEGNA Shareholders,

After an incident of racial insensitivity involving the CEO of TEGNA, which was reported by the Wall Street Journal, Standard General called for the Board to conduct an independent investigation. 

They did not.

In the weeks that followed the article, Standard General received numerous letters from individuals who have worked at TEGNA and suffered from racism and discrimination over a number of years.  Simple Google searches unveil issues of discrimination from the top to the bottom – from current board members down to the station-level.  We asked TEGNA to conduct an independent investigation into these matters and provide records on what the Company has done to address these issues. 

They did not – instead TEGNA offered Standard General access to a limited number of documents conditioned upon Standard General signing an NDA.

TEGNA portrays these DE&I issues as having been resolved – in a letter to shareholders addressing the CEO's racial insensitivity, Howard Elias (Chairman of the TEGNA board) said he was "proud of these steps in which TEGNA has shown leadership" with regards to the Company's DE&I initiatives.  Mr. Elias makes this claim despite his own internal investigation consisting of just one independent interview.

The Company's employees, the communities it operates in, and its shareholders deserve better.

In response to this lack of action, Standard General commissioned a leading investigative firm, Quest Research and Investigations (QRI), to conduct an independent study into the various reported allegations of discrimination at TEGNA.  We have released it here:

https://tomorrowstegna.com/wp-content/uploads/2021/04/QRI-Report-Alleged-Discrimination-at-Tegna.pdf 

We are research-intensive investors that conduct our own extensive due diligence and do not solely rely on management representations.  But, it is a shame that TEGNA's largest active shareholder has had to do the job of its board and management team.  We hope this report will enable shareholders to make an informed choice on the future direction of the Company.

Best Regards,
Soo Kim
Founding Partner
Standard General L.P.

Forward-looking Statements

All statements contained in this press release that are not clearly historical in nature or that necessarily depend on future events are "forward-looking statements," which are not guarantees of future performance or results, and the words "anticipate," "believe," "expect," "potential," "could," "opportunity," "estimate," "plan," and similar expressions are generally intended to identify forward-looking statements. The projected results and statements contained in this press release that are not historical facts are based on current expectations, speak only as of the date of this press release and involve risks that may cause the actual results to be materially different. In light of the significant uncertainties inherent in the forward-looking statements, the inclusion of such information should not be regarded as a representation as to future results. Standard General L.P. disclaims any obligation to update the information herein except as may be required by law and reserves the right to change any of its opinions expressed herein at any time as it deems appropriate. Standard General L.P. has not sought or obtained consent from any third party to use any statements or information indicated herein as having been obtained or derived from statements made or published by third parties.

CERTAIN INFORMATION CONCERNING THE PARTICIPANTS

Standard General L.P., together with the other participants named therein, has filed a definitive proxy statement and accompanying WHITE proxy card with the Securities and Exchange Commission ("SEC") to be used to solicit votes for the election of its slate of highly-qualified director nominees at the 2021 annual meeting of shareholders of TEGNA Inc., a Delaware corporation (the "Company").

STANDARD GENERAL STRONGLY ADVISES ALL SHAREHOLDERS OF THE COMPANY TO READ THE PROXY STATEMENT AND OTHER PROXY MATERIALS BECAUSE THEY CONTAIN IMPORTANT INFORMATION. SUCH PROXY MATERIALS ARE AVAILABLE AT NO CHARGE ON THE SEC'S WEBSITE AT HTTP://WWW.SEC.GOV. IN ADDITION, THE PARTICIPANTS IN THIS PROXY SOLICITATION WILL PROVIDE COPIES OF THE PROXY STATEMENT WITHOUT CHARGE, UPON REQUEST. REQUESTS FOR COPIES SHOULD BE DIRECTED TO THE PARTICIPANTS' PROXY SOLICITOR: OKAPI PARTNERS LLC, BRUCE GOLDFARB / JASON ALEXANDER / PAT MCHUGH, 212-297-0720, INFO@OKAPIPARTNERS.COM

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SOURCE Standard General

FAQ

What allegations are included in the independent report on TEGNA by Standard General?

The report outlines multiple allegations of discriminatory practices within TEGNA, citing systemic issues from board members to station-level staff.

What did Standard General request from TEGNA regarding the CEO's racial insensitivity?

Standard General called for an independent investigation into the CEO's racial insensitivity incident, which TEGNA did not undertake.

How might the allegations of discrimination affect TEGNA's stock performance?

Allegations of discrimination could harm TEGNA's reputation, potentially leading to decreased investor confidence and negatively affecting stock prices.

What is the role of Standard General in TEGNA's current situation?

Standard General is TEGNA's largest equity holder and has commissioned an independent report to investigate allegations of discrimination within the company.

Where can shareholders access the independent report on TEGNA's DE&I issues?

The independent report by Quest Research & Investigations is available at tomorrowstegna.com, as announced by Standard General.