The Hollinger International newspaper chain removed Conrad Black as its chairman Saturday, hours after announcing a $200 million US lawsuit over alleged financial irregularities.

The lawsuit is against Black and associate David Radler. It accuses them of "sham" accounting, and alleges that they "diverted and usurped corporate assets." Several companies controlled by Black are also named.

Conrad Black
Conrad Black

Hollinger International Inc. is a U.S.-based organization that owns the Chicago Sun-Times, the Telegraph of London and the Jerusalem Post.

Black resigned as chief executive of Hollinger International last fall as the feud with its shareholders intensified. But he denied any wrongdoing, and called the departure a "retirement."

He was non-executive chairman of the company until being dumped Saturday, but he remains the controlling shareholder. He's also chairman of the parent firm Hollinger Inc., which is based in Toronto.

The lawsuit was filed in the U.S. District Court in New York on Friday but not made public until Saturday. It demands the repayment of allegedly diverted assets and various fees.

The suit calls on Black and Radler, an executive with Toronto-based Hollinger Inc., to refund all salaries and dividends they collected during the time period in dispute.

The legal claim was launched by a special committee of the Hollinger International board that reviewed payments made to the media baron.

"This litigation marks a substantial step towards returning to our shareholders the value that was inappropriately taken from this company," said Gordon Paris, chairman of the special board committee, in a statement released Saturday night.