LA Weekly Co-Owner Says Other Owners Looted Paper ‘to Enrich Themselves’ in New Lawsuit

In a 2018 lawsuit, LA Weekly board member and co-owner David Welch accused fellow owners—led by publisher Brian Calle—of mismanagement, self-dealing, and breaching fiduciary duties following their 2017 acquisition of the publication. Welch, who contributed $225,000 and legal services to facilitate the purchase, claims he was subsequently excluded from company decisions. The complaint alleges that owners diverted ad revenue to related entities, offered discounted deals to insiders, and caused the collapse of LA Weekly’s events and digital business, sparking advertiser boycotts and reputational harm. Welch is seeking judicial dissolution of the parent company, Semanal/Street Media LLC, under California and Delaware law. A judge denied the defendants’ motion to dismiss, allowing the suit to proceed. The case raises key concerns about transparency, investor rights, and fiduciary oversight—particularly relevant to media acquisitions and joint ventures with complex ownership structures. It serves as a cautionary tale for legal counsel advising on governance and minority protections.