Los Angeles (July 8, 2004) -- Two Accpac International executives, former chief executive David Hood and current chief operating officer Donnat Lettman, have sued Computer Associates International, alleging that the company substantially short-changed the two men on fees they were to receive in helping CA sell its Accpac subsidiary to Sage.
A Computer Associates spokesman says the company hasn't yet seen the complaint, filed on July 1 in Superior Court in Alameda County, Calif. However, the company said, “We strongly believe that we have honored all of our obligations under the Accpac merger agreement with the Sage Group.”
Hood received $1.375 million, but believes he should receive an additional $1.75 million, while Lettman got $825,000 but says he is owed $1.05 million more. The two are seeking general, specific and punitive damages, along with attorneys’ fees and the costs of the suit. Hood left the company last week. Lettman is in charge of Accpac’s finances during the transition to Sage’s ownership.
Under a 2003 agreement, Hood and Lettman were entitled to success fees based on a percentage of the Accpac sale price for helping sell their company. However, they allege that CA loaded the Accpac board of directors with senior CA officials, putting them in the place of four independent directors. Hood, Lettman and another CA director were on the board. The allegations continue that the board then changed the calculation of fees, which reduced payments to which the two executives believed they were eligible.
-- Robert W. Scott
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