TORONTO – The Ontario Superior Court has ruled that Look Communications does not have to pay the legal costs of its former executives and officers, except for those of Alex Dolgonos. Look is suing them to recover $15.7 million in restructuring awards the group received when Look sold its spectrum licences to Rogers Communications and Bell Canada for $80 million in 2009 with net proceeds of $64 million.
Executive chairman Michael Cytrynbaum, chief executive Gerald McGoey and chief technology analyst Alex Dolgonos were paid a total of about $14 million. With Look’s other directors receiving the remainder of the award.
Look claims the payments were in breach of fiduciary duties and standards of care, or, for damages for unjust enrichment for payments and decisions which the company alleges were not in Look's or its shareholders' best interests.
Look says it now intends to seek reimbursement of its costs of responding to the applications and motions and to move forward with its claims.
