Darkbeer
06-02-2003, 05:29 PM
Judge allows suit charging Disney board negligent in Ovitz hiring (http://www.kansascity.com/mld/kansascity/business/5998612.htm) - AP, 6/2/03
QuikQuote: A judge has ruled that shareholders can proceed with a lawsuit alleging that the board of The Walt Disney Co. was negligent in hiring former president Michael Ovitz, then approving a $38 million cash payout after he served only 16 months.
The amended complaint claims the Disney board was negligent in not consulting an expert before approving Ovitz's employment contract and that Disney Chairman Michael Eisner allowed Ovitz, a close friend, to collect a severance payment to avoid personal embarrassment.
QuikQuote: A judge has ruled that shareholders can proceed with a lawsuit alleging that the board of The Walt Disney Co. was negligent in hiring former president Michael Ovitz, then approving a $38 million cash payout after he served only 16 months.
The amended complaint claims the Disney board was negligent in not consulting an expert before approving Ovitz's employment contract and that Disney Chairman Michael Eisner allowed Ovitz, a close friend, to collect a severance payment to avoid personal embarrassment.