Viscount Systems (VSYS)

[nynewbie]

You are probably right but these guys need sales people not a bunch of veeps.

Back when Raefield became CEO I mentioned I hoped this wouldn't end up in court but as far as this lawsuit is concerned it seems to fit Raefield's pattern? At Mace he was welcomed on the Board as a retired elder statesman and somehow ended up being CEO just like at Viscount. A lawsuit with the ex CEO followed in which he won like $4M including defamation. After losing the suit Raefield's contract as CEO was not renewed. I think I read it cost Mace around another $1M in legal or something like that. The judgement said that the Reafield and the board set the guy up by forcing the CEO to do some irrational cost cutting then fired him for refusing to do the impossible.

"The Arbitration Panel found that Mr. Paolino was correct – the cost cuts Mr. Paolino “said were impossible could not be achieved”. The Arbitration Panel further found that the Company’s new Chief Executive Officer, Dennis Raefield and its Board “were unable to cut costs without damaging the Company’s revenue and profits”"

http://www.prlog.org/10663263-former-ceo-of-mace-security-international-inc-wins-over-4-million-in-wrongful-termination-lawsuit.html

That said, I hope for the investors sake that Raefield is right because he may be poking a sleeping dog. I didn't see anything in their financials that showed they ever settled with the guy and the article says he hasn't filed a defence or countersuit. It would suck if the EX CEO counters with the type of wrongful dismissal suit that Mace was faced with. In that case Raefield is risking losing BIG$$ while being distracted for the next 2 years for the sake of trying to win small $$ all the while draining cash for legal fees. These things can go sideways and get ugly. Among other things there are financial repercussions for the company, not the least of which is that a large counter suit hanging over VSYS could affect the share price and the ability of the company to raise money.

Maybe he'd be better off concentrating on growing VSYS.