Glenn Beck's Mercury Radio Arts Sues Its Former President
August 1, 2016 at 1:15 PM (PT)
GLENN BECK's MERCURY RADIO ARTS has sued the former President and COO of the company and President and CEO of THEBLAZE, current RED SEAT VENTURES principal CHRIS BALFE, BECK's own website confirmed TODAY (8/1). BECK linked to a report at LAWNEWZ.COM about the suit, adding, "I am embarrassed and saddened it has come to this. It is an ongoing legal matter so you will not hear me speak of this often but as always, I want you to hear it from me."
The suit, filed in District Court in DALLAS COUNTY, TX by attorney ELIOT BURRISS of DLA PIPER LLP, alleges that BALFE "betrayed" BECK's trust in delegating oversight of operations to him, "abandoned his duties to MERCURY" when contributing some of that company's assets to THEBLAZE upon the latter's formation in 2012, violating a three-year noncompete, voting himself ($13 million) and other executives "grossly unreasonable compensation," did not require himself to sign a nondisclosure agreement, and agreed to an "unnecessary" lease at a MANHATTAN office building. The suit also charges BALFE with "general mismanagement," calling him "a terrible executive" who "hid his misconduct and mismanagement" from BECK. And it alleges that BALFE is now competing with THEBLAZE for podcasts like MIKE ROWE's current show for RED SEAT VENTURES and is working with PREMIERE NETWORKS on SEAN HANNITY's digital presence, which BECK alleges was a conversation started at THEBLAZE, and also hired THEBLAZE staffers, some of whom BECK says were working for both companies at the sale time.
MERCURY's suit charges BALFE with breach of fiduciary duty, being a "faithless servant," fraud, constructive fraud, breach of the Stockholders Agreement, and unjust enrichment and seeks damages, a permanent injunction, and return of BALFE's stock and anything he made after the alleged breaches, plus attorneys' fees and costs.
In a statement given to LAWNEWZ.COM, BALFE responded, “I feel terrible for GLENN and I hope he finds the help that he needs."