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.
Dennis wrote in the letter that he had “serious concerns” regarding what he characterized as “wrongdoing and breach of fiduciary duty” by the board members.
Dennis, who wrote that he owns more than 10% of Group Black, requested a special shareholders’ meeting to vote on the matter.
“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. Holler is a messaging startup founded by Travis Montaque, Group Black’s former CEO.
Essence and Afropunk later filed an amended complaint, and Group Black responded in June with its own counterclaims. Group Black, in part, alleged that the companies represented that any services “would not be paid in cash, but instead compensated with equity in Group Black.” The counterclaims said the demand for cash repayment damaged the company. Group Black also denied many of the allegations in the Essence and Afropunk suit, including that it improperly used money to enrich itself and Holler.
The litigation is ongoing.
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Dennis’ new letter accused Group Black of:
- Making “exorbitant expenditures not reasonably connected to the Company’s operations” while failing to pay unnamed vendors and business partners
- Hiring lawyers in a “wasteful attempt to devise frivolous defenses” against claims over payment matters
- Failing to appoint board members competent to oversee the company
Group Black was launched in 2021 following the George Floyd protests that led to a national reckoning and prompted big advertisers like Coca-Cola and Walmart to increase their spending on Black-owned media.
The company has since faced a mix of internal struggles, executive departures, and broader market challenges, Business Insider has previously reported. Montaque quietly left his CEO role in the summer of 2024, and a string of other executives and board members have departed.
Group Black pivoted this summer with a new venture called Portrait Media Group, targeting a wider audience amid corporate retreats from DEI pledges.
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