Forth Worth, Texas (Nov. 25, 2002) -- The woes keep mounting for departing Securities and Exchange Chairman Harvey Pitt.
Just weeks after he resigned as SEC chair, he has found himself a defendant in a lawsuit filed by electronics conglomerate RadioShack Corp.
The company charges Pitt and his former law firm, Fried, Frank, Harris, Shriver & Jacobson, which had been an advisor to the company on the 1994 sale of a subsidiary -- O'Sullivan Industries Holdings Inc. in an IPO -- of a conflict of interest because the firm later represented O'Sullivan in a leveraged buyout.
As a result of the IPO, O'Sullivan was to make annual payments to RadioShack over a 40-year period. However, the suit alleges that the buyout slashed O'Sullivan's taxable income and subsequently affected its payments to RadioShack.
The lawsuit claims that because Fried Frank represented RadioShack during a 10-year period from 1990-2000, it constitutes a conflict of interest.
-- Electronic Accountant Newswire staff
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