Monday, April 16, 2007
Lawsuit accuses O'Sullivan turnaround expert of shady dealings
James Malone, the veteran turnaround expert who was supposed to rescue O'Sullivan Industries has his detractors, including a former company that claimed in a 2005 lawsuit that Malone had some ethical issues.
In a lawsuit filed in U. S. District Court for the Southern District of New York, officials with Malone's former company Bridge Associates, Malone was charged with "breach of contract, breath of fiduciary duty, unfair competition and fraud."
The lawsuit claims that Malone, while working for Bridge, a company that helped businesses going through restructuring, stole a major client in the airline industry and used it to start his new business Qorval, which also helped floundering businesses.
Malone used his Bridge job to gain access to Avborne, then took the company's business for himself, landing himself a lucrative consulting position and a spot as an executive officer with Avborne, according to the lawsuit.
The lawsuit says Malone was fired from Bridge Associates in 2003 for unrelated reasons. Bridge officials say Malone's actions cost them in excess of half a million dollars. The lawsuit was later removed from federal court and is currently winding its way through New York state courts.