The owner of the Los Angeles Times billionaire was slapped in a $24 million lawsuit by the landlord of a renowned printing factory that allegedly failed to pay rent, and allegedly turned the building into a “gross destroyer.”
Real estate developer Alameda alleged that biotech entrepreneur Patrick Snaion and lease guarantor Nante Media had breached a rental agreement for the Olympic factory in downtown LA, which he left last March.
The facility was covered in other damages, such as “toxic ink stains,” “wall holes,” and “active leaks,” according to a lawsuit filed in the LA Supreme Court in late January.
A building of “gross devastation”. Retrieved by NY Post
The case, which has been delayed in court due to the recent LA fire, has now been rebooted and has been discovered.
Alameda's lawyer said Nantmedia, owned by the Soon-Shiong company, missed payments for the rental and refused to pay six months of interest on late payments.
Despite having a lease that gives the LA Times the option to continue operating the plant until 2042, it said that Sion quickly “choosing to abandon the facility” significantly reduced costs, and that the lease ended last March, with tenants supposed to leave the facility and that they would leave the facility in force by August 31, 2024.
However, the LA Times did not open the factory until September 30th. “We will refuse our lease obligation and leave it amended and unsecured,” the lawsuit alleges, adding that in 1989 “the iconic plant was built during its heyday as one of the nation's most respected newspapers.”
“The LA Times left toxic ink stains, torn floors, active leaks, wall holes and other damage throughout the facility,” according to a complaint that provided images of the damage.
It is covered in “toxic ink stains,” the lawsuit said. Retrieved by NY Post
$24 million. Retrieved by NY Post
Alameda also added that the LA Times has not adhered to an agreement to restore the plant to its original state, saying, “A few hundred yards of ductwork and conduits, as well as a portion of a large pergola known as a “quiet room” were used by Limes employees to run the print press. ”
According to the lawsuit, Alameda estimated it would cost millions of dollars to restore the plant to its original state.
Attorneys for the LA Times and Nantmedia called the lawsuit “merciless.”
“Our clients look forward to solving the problem,” the lawyer posted Monday.
Alameda's lawyers called on Soon-Shiong on suspicion of “mismanagement and penny pinch” as they are trying to cut costs with Flag's publications.
“The LA Times tenure with the plaintiffs at Olympic Printing did not need to end this way as another victim of Mr. Soon-Shiong's mismanagement and penny pinch. It is clear that the defendant has made a strategic decision to ignore his legal obligation to return the facility on appropriate terms,” the lawsuit said.
The factory was spun in 2012 as part of the bankruptcy of former owner The Tribune Co., and a year later the Times became a tenant. Soon-Shiong bought the newspaper in 2018, and since then the newspaper has “declined,” the lawsuit said.
Last year, Soon-Shiong said the publication lost between $30 million and $40 million a year, cutting over 115 jobs (more than 20% of the 500 newsrooms), marking one of the biggest workforce cuts in the newspaper's 142-year-old history.
At the time, Soon-Shiong said it wanted a better “balance” against the liberal editorial coverage of the paper after blocking the editorial board from announcing the approval of then-democratic presidential candidate Kamala Harris.
The move sparked internal confusion and rage among readers, with thousands cancelling subscriptions and several LA Times editorial staff resigning in protest of political change.
Earlier this year, Soon-Shiong offered a series of acquisitions to staff who have worked in paper for over two years, reducing costs and directing the newspapers further in the middle.
