K-tel sues former president for alleged concealment
Published Oct 26 2001
K-tel International Inc. sued its former president for allegedly
concealing financial information from corporate officers.
The company, based in Maple Plain, alleges that David
Weiner, who was president from September 1996 until
November 1998, misrepresented the cost of some acquisitions
to the company's CEO, according to the complaint filed
Wednesday in Los Angeles Superior Court. He also is accused
of founding a German business using K-tel money.
K-tel claims it didn't discover Weiner's alleged misconduct
until 1999, after he left the company. K-tel is seeking
unspecified compensatory and punitive damages in its fraud
and breach-of-contract lawsuit.
Weiner, who lives in Los Angeles, couldn't be reached for
comment.
K-tel's U.S. music distribution unit filed in March to liquidate
under bankruptcy protection after a top customer didn't pay its
bills.
Shares of K-tel, which traded as high as $33.94 in May 1998,
were unchanged Thursday at 15 cents on the over-the-counter
Bulletin Board.
-- Bloomberg News
© Copyright 2001 Star Tribune. All rights reserved. |
