A jury has awarded $1.3 million to two CPAs who sued their former accounting firm, MaloneBailey.
A unanimous jury awarded the two CPAs, David Grossman and Jeff Houston, $1.3 million based on the accounting firm’s failure to pay amounts owed them following their separation from the firm, including amounts owed for the repurchase of their shares of stock in the accounting firm. They also found that the firm’s SEC practice leader, John Malone, breached fiduciary duties.
The jury also unanimously rejected a counterclaim filed by MaloneBailey in which the firm sought more than $750,000 in damages based on alleged breaches of overly restrictive non-compete provisions, confidentiality provisions, and buy-sell provisions contained in Grossman and Houston’s employment agreements, which would have required that they pay the firm for future services provided by their new firm, GBH CPAs, PC.
“We reject the verdict and intend to appeal,” said MaloneBailey spokesperson Caroline Rosen.
A team from the law firm BoyarMiller’s litigation group, led by chairman Chris Hanslik, successfully represented Grossman and Houston as plaintiffs.
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