Platinum Equity, the Bev Hills-based private equity firm that recently bought the SD Union-Tribune, is taking on the San Diego Reader. Beef is over the Reader publishing details of sexual harassment lawsuits that had been filed against Platinum. As posted by the Reader's Don Bauder (long-time financial editor of the U-T), Platinum has L.A. attorney Martin Singer (aka Mad Dog) threatening the alternative weekly with a defamation suit "giving rise to potentially astronomical damages." Singer warns, "You proceed at your peril." These kinds of penis threats are made fairly often in L.A. business circles, occasionally freaking out publishers even when the law is clearly on the publication's side. What's weird about this situation is that Platinum now owns a newspaper - a pretty important one in fact - and its hostility towards the press does not bode well for the newsroom.
As for the sexual harassment suits, here's a summation from the Reader:
This suit alleged that Platinum Equity "creates and tolerates a persistent, and pervasively sexually charged and hostile environment for women." Moreover, "Sexual favors, the demand for sexual gratification and the payment of favors and 'hush' money are fixed policy and practice among PE [Platinum Equity] executives."The complaint alleged that Platinum executives "show favoritism towards female employees who consent to the employer's sexual advances by rewarding them with money, gifts and travel, [meanwhile] promoting or rewarding women based on appearance and submission to sexual advances by PE executives, and financially supporting former employees to keep them quiet."
Further, the company "intimidates, coerces or terminates female employees if they question or refuse to go along with the sexually charged atmosphere," the Jane Doe suit alleged. It claimed that [founder Tom] Gores and his top lieutenants had affairs with female employees and accompanied female assistants to strip clubs. One of the plaintiffs charged that one executive "constantly made sexually charged comments at work such as, 'Hey, do you want to see what's in a man's underwear?' and 'What do you say my hot dog goes between your buns?' "
The plaintiffs dismissed the case, and it's unclear whether a settlement was reached. A Platinum spokesman said successful companies often become targets for gratuitous lawsuits filled with unfounded allegations. Wonder if any of this will see the light of day in the U-T.