Allan Block’s request for a preliminary injunction to prevent the possible sale of Block Communications, Inc., is moot, as he and two other individuals have since been put on the committee exploring the future of the business, BCI attorneys argued in a court filing.
They made their argument in a memorandum that was filed Wednesday in Lucas County Common Pleas Court, in response to a lawsuit brought by then BCI Chairman Allan Block.
On May 8, Allan Block filed a motion seeking a preliminary injunction to prevent BCI, his brother John Robinson Block, and other members of the family from selling the businesses. Block Communications is the parent company of The Blade and Buckeye Broadband, among other companies.
The relief Allan Block was seeking was to be placed on the committee exploring the possible sale of the company, to stop the committee from exploring the possible sale of the business until he was placed on the committee, and to prevent corporate funds from being spent by the committee until he was made a member of the committee.
Attorneys indicated that on Monday, BCI’s board of directors voted to place Allan Block and two other individuals — Jodi Miehls, BCI’s president and chief operating officer, and John Straub — on the Exploratory Strategic Committee immediately. This action, the motion argues, renders the three key points in Allan Block’s request for a preliminary injunction moot.
Also in the motion, they asserted “the Board is not pursuing a ‘fire sale’” of the business as Allan Block’s attorneys argued in the initial filing, and that the committee formed in January was tasked with reviewing BCI’s “strategic alternatives,” which may or may not include a sale of the business.
Additionally, “the defendants reject the vitriolic narrative and the misrepresentations strewn throughout [Allan Block’s] complaint and motion.” It also argues Allan Block’s “sensationalized lawsuit thus attacks the board because it had the temerity to merely question his judgment.”
At the meeting on Monday, the board removed Allan Block from his position as CEO and chairman of the board. He remains a shareholder and on the board of directors.
Allan Block declined to comment Thursday afternoon.
There will be a status pre-trial hearing Friday morning in Lucas County Common Pleas Court on Allan Block’s lawsuit and request for a preliminary injunction.
First Published May 23, 2024, 8:45 p.m.