Sitrick's Lawyer: 'No Basis' To ESOP Suit

UPDATES Crisis Flack Mike Sitrick Sued By Employees

Here’s a statement from John A. Kober of Morgan Lewis & Bockius, which is the legal counsel for Sitrick And Company on ESOP matters. (FYI, I broke this story yesterday. And the lawsuit I saw has a U.S. District Court time-stamp on it, so his allegation that it was never filed is bullshit.):

“The first Mr. Sitrick learned of this alleged lawsuit, filed by one former employee, was from a report on a blog. Neither Mr. Sitrick nor the firm has been contacted, nor have they been served.  The ESOP had its own independent trustee, who hired its own independent legal counsel and independent valuation firm.  The ESOP’s trustee approved the termination at the price paid to participants.  Mr. Sitrick had no role in the valuation that was set.  According to a preliminary review of Sitrick And Company records, Mr. Wool was 20% vested when he left the firm in 2004.  When the plan was dissolved in December 2008, Mr. Wool received 65% more than his account was worth when he left in 2004.  We don’t believe there is any basis to the lawsuit, if indeed one has been filed.”

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