Group Black cofounder calls for board's removal, citing 'serious concerns' about its conduct

"The battle between Group Black, a firm created to direct ad dollars to Black-owned media, and one of its cofounders has taken a new turn. Cofounder Richelieu Dennis sent a letter on Monday addressed to the board, calling for the removal of all five members - including fellow Group Black cofounder Bonin Bough. The letter, which Business Insider viewed, accused the firm of overspending and mismanagement under the board's watch."

"“The allegations in Mr. Dennis' letter, which the media apparently received the same day he sent it to Group Black, are categorically false and defamatory,” Group Black said in a statement. “The company conducts itself with integrity and will continue to do so. Our focus remains on advancing Group Black's mission and business on behalf of our team members and shareholders.”"

"Dennis, a prominent entrepreneur who founded the SheaMoisture and Sundial body-care companies, left the Group Black board in August 2024. In recent months, two companies under the umbrella of his Sundial Media and Technology Group have been locked in a legal fight with Group Black. Essence Communications and Afropunk Worldside sued Group Black in October 2024, alleging, in part, that Group Black owed them about $20 million and improperly used those funds to enrich Group Black and Holler."

Cofounder Richelieu Dennis sent a letter calling for the removal of all five Group Black board members, including cofounder Bonin Bough, alleging overspending, mismanagement, wrongdoing, and breach of fiduciary duty. Dennis said he owns more than 10% of Group Black and requested a special shareholders' meeting to vote on board removal. Group Black called the allegations categorically false and defamatory, stated the company conducts itself with integrity, and said it remains focused on advancing its mission and business for team members and shareholders. Dennis left the board in August 2024. Essence Communications and Afropunk Worldside sued Group Black in October 2024 alleging about $20 million owed and improper use of funds. Holler is a messaging startup founded by Travis Montaque.

Read at Business Insider