Rich Cronin wants his cut of Fox Family Channel's sale to The Walt Disney Co.
for $5.3 billion.
So Cronin, former president of Fox Family, has filed a breach-of-contract
suit against his ex-employer, looking to recover $12.7 million in compensatory
damages, unspecified punitive damages and to benefit fully from his stock
options.
The suit was filed this week in Superior Court in Los Angeles against Fox
Family Worldwide Inc. The legal action alleged that the company is trying to bar
Cronin from benefiting, via his stock options, from the pending sale of its
cable outlet to Disney. Disney's purchase of Fox Family Channel is slated to
close by the end of the year.
Cronin, now president of Game Show Network, was 'ousted' by Fox Family
Worldwide chairman Haim Saban May 22, 2000, according to the suit. Now, Cronin
claims that the company owes him $712,900 in wages.
The suit also alleged that Fox Family 'has refused to acknowledge Mr.
Cronin's ownership of Fox Family stock options, worth a minimum of $11.9
million.'
A Fox Family spokeswoman said Wednesday that the company has a policy of not
commenting on pending litigation.
In the suit, Cronin contended that he only agreed to leave a secure job at
MTV Networks -- where he was general manager at TV Land -- on the condition that
he would receive equity ownership in Fox Family, along with a lucrative salary
package.
The suit claimed that Cronin, in a contract dated Oct. 17, 1997, was
guaranteed a minimum of three years' employment, a nice salary and 'nonqualified
options for at least 1 percent of the stock in Fox Family.'
