Group Black Cofounder Requires Board’s Ouster Amid Cash Issues

The battle between Group Black, a agency created to direct advert {dollars} to Black-owned media, and certainly one of its cofounders has taken a brand new flip.

Cofounder Richelieu Dennis despatched a letter on Monday addressed to the board, calling for the elimination of all 5 members — together with fellow Group Black cofounder Bonin Bough. The letter, which Enterprise Insider seen, accused the agency of overspending and mismanagement beneath the board’s watch.

Dennis wrote within the letter that he had “severe considerations” concerning what he characterised as “wrongdoing and breach of fiduciary responsibility” by the board members.

Dennis, who wrote that he owns greater than 10% of Group Black, requested a particular shareholders’ assembly to vote on the matter.

“The allegations in Mr. Dennis’ letter, which the media apparently obtained the identical day he despatched it to Group Black, are categorically false and defamatory,” Group Black mentioned in a press release. “The corporate conducts itself with integrity and can proceed to take action. Our focus stays on advancing Group Black’s mission and enterprise on behalf of our group members and shareholders.”

Dennis, a outstanding entrepreneur who based the SheaMoisture and Sundial body-care corporations, left the Group Black board in August 2024.

In latest months, two corporations beneath the umbrella of his Sundial Media and Expertise Group have been locked in a authorized battle with Group Black.

Essence Communications and Afropunk Worldside sued Group Black in October 2024, alleging, partially, that Group Black owed them about $20 million and improperly used these funds to complement Group Black and Holler. Holler is a messaging startup based by Travis Montaque, Group Black’s former CEO.

Essence and Afropunk later filed an amended grievance, and Group Black responded in June with its personal counterclaims. Group Black, partially, alleged that the businesses represented that any companies “wouldn’t be paid in money, however as an alternative compensated with fairness in Group Black.” The counterclaims mentioned the demand for money reimbursement broken the corporate. Group Black additionally denied most of the allegations within the Essence and Afropunk go well with, together with that it improperly used cash to complement itself and Holler.

The litigation is ongoing.

Dennis’ new letter accused Group Black of:

• Making “exorbitant expenditures not moderately related to the Firm’s operations” whereas failing to pay unnamed distributors and enterprise companions
• Hiring attorneys in a “wasteful try to plan frivolous defenses” towards claims over cost issues
• Failing to nominate board members competent to supervise the corporate

Group Black was launched in 2021 following the George Floyd protests that led to a nationwide reckoning and prompted large advertisers like Coca-Cola and Walmart to extend their spending on Black-owned media.

The corporate has since confronted a mixture of inner struggles, govt departures, and broader market challenges, Enterprise Insider has beforehand reported. Montaque quietly left his CEO function in the summertime of 2024, and a string of different executives and board members have departed.

Group Black pivoted this summer season with a brand new enterprise referred to as Portrait Media Group, concentrating on a wider viewers amid company retreats from DEI pledges.

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