Michael Sitrick, CEO of Sitrick & Company, has worked with a number of high profile clients over the years, from Halle Berry and Rush Limbaugh to Paris Hilton and the Archdiocese of Los Angeles during a sexual-abuse lawsuit.
Now, the “spin doctor of restructuring” — as the Financial Times recently called him — is being sued by a former employee and current employees for “self dealing,” and devaluing the Sitrick Employee Stock Ownership Plan.
His firm was acquired by Resources Connection, Inc. in October 2009.
The suit alleges that “of the more than $92M in cash, stock and earnouts earmarked for the ’09 acquisition of Sitrick Brinko Group by Resources Connection Inc., $87.4M went to the purchase of Sitrick’s personal goodwill and $5M went for the purchase of S&C’s assets,” reports O’Dwyer’s.
Richard Wool, who ran Sitrick and Co’s New York operations, is the lead plaintiff, although, “the suit has been filed on behalf of all the plan’s members, including some current employees,” reports Deadline.com.
“We don’t believe there is any basis to the lawsuit, if indeed one has been filed,” John A. Kober of Morgan Lewis & Bockius, Sitrick And Company’s legal counsel, said in a statement.
RELATED: Los Angeles-based Toyota dealers were about to hire Sitrick in February, before word came down from corporate headquarters advising them against the move.