UPDATE: Sitrick’s Lawyer: ‘No Basis’ To ESOP Suit

sitrickIt looks like crisis PR guru Mike Sitrick is going to need his own services. The high-priced flack, whose Sitrick & Company also reps showbiz types, is the target of a lawsuit that was certified today in U.S. District Court in Los Angeles. It alleges, among other things, that he manipulated the value of his firm’s Employee Stock Option Plan (ESOP) to deprive current and former employees of millions of dollars. I must say that, for years, I’ve heard complaints about his ESOP from former and current employees. The ESOP was formed in 1999 and was terminated at the end of 2008 while Sitrick was in negotiations to sell the firm to Resources Connection Inc. Richard Wool, the former head of Sitrick’s New York office 2001-2004, is the name plaintiff, but the suit has been filed on behalf of all the plan’s members, including some current employees. Besides Sitrick, the other defendants are his wife Nancy, their trust, and Relieance.