Acacia Research’s ex-CEO sues company in effort to get back on board (NASDAQ:ACTG)
courtneyk
Acacia Research’s (NASDAQ:ACTG) said Friday its board has been conducting an internal investigation into apparent misconduct by its former CEO, Clifford Press, and found preliminary findings of inaccurate information on some of his corporate expense report, apparent misuse of corporate funds for personal use, and charitable donations made in his name using corporate funds.
The company also said Press failed to follow the board’s directive related to a material contract. That failure to comply with the board led to a substantial further liability, the company said. After the board informed Press about potential instances that could qualify for termination for cause, he resigned as CEO and from the board.
After weeks of discussions with to agree on a severance package, the company said Press’s representatives sought a package that included a payment “that is exponentially larger than what he would have been owed in the event he had not resigned and had simply been terminated without cause.”
On Dec. 30, Press filed a lawsuit against Acacia (ACTG) seeking to be reinstated as a director of the company. Acacia believes the suit lacks merit, it said.
On Oct. 31, Press announced that he would retire from Acacia (ACTG), on the same day that the company reached a deal with activist hedge fund Starboard Value.
