One shareholder suit dropped, Mercury Air still faces assault. (Investments & Finance).IT'S one down, two to go for Mercury Air Group, the Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. aviation services firm that has been accused of securities fraud and racketeering Traditionally, obtaining or extorting money illegally or carrying on illegal business activities, usually by Organized Crime . A pattern of illegal activity carried out as part of an enterprise that is owned or controlled by those who are engaged in the illegal activity. . Last week, plaintiff Keith Scott This article is about Keith Scott, the Canadian musician. For the Australian-born voice actor named Keith Scott, see Keith Scott. Keith Douglas Scott (born 20 July 1954) is a Canadian guitar player. voluntarily dismissed his complaint against Mercury Air, which was filed in Los Angeles Superior Court on Dec. 23, but had been moved to federal court because of the racketeering charge. "All the allegations contained in the lawsuit came from our public filings," said Wayne Lovett, executive vice president and general counsel for Mercury Air Group. "They have taken things in the public record and turned them around." Rex Beaber, the attorney for Scott, did not return calls. Mercury Air faces two other shareholder suits, each alleging breach of fiduciary duty Noun 1. fiduciary duty - the legal duty of a fiduciary to act in the best interests of the beneficiary legal duty - acts which the law requires be done or forborne . One was filed in Los Angeles Superior Court on Nov. 18 on behalf of Investorwatch LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control ; the other was filed in San Diego Superior Court two weeks later on behalf of plaintiff Andrew J. Chitiea. Each of the three suits revolves around a series of related party transactions over the past two years. In July 2000, according to the Chitiea complaint, three company directors, Joseph Czyzyk, Philip Fagan and Frederick Kopko, purchased a controlling interest controlling interest The ownership of a quantity of outstanding corporate stock sufficient to control the actions of the firm. Controlling interest often involves ownership of significantly less than 51% of a firm's outstanding stock because many owners fail of Mercury Air's stock, and then subsequently raised their salaries. Chief executive Czyzyk, for instance, saw his salary increase to $520,000 from $250,000 a year. Kopko and Fagan were on the compensation committee when the raises were approved, according to a filing with the Securities and Exchange Commission. Mercury Air has said the charges are without merit. Both complaints point to a January 2002 transaction in which the same three directors purchased the company headquarters, which was disclosed in filings. They maintain the transaction was unfair to shareholders. "The message is we believe the allegations are dead wrong," Lovett said. "I expect the other two will be dealt with and hopefully dismissed in the near future." Amid the legal troubles, Bermuda-based buyout firm Acquisitor ac·quis·i·tive adj. 1. Characterized by a strong desire to gain and possess. 2. Tending to acquire and retain ideas or information: an acquisitive mind. Holdings Ltd. has purchased 10 percent of Mercury Air's stock in open market transactions, raising suspicions that a buyout offer could be on the horizon. "I don't know Don't know (DK, DKed) "Don't know the trade." A Street expression used whenever one party lacks knowledge of a trade or receives conflicting instructions from the other party. what they want and I don't know what else can I tell you. These are people who have, an interest in our stock and I haven't heard from them," Czyzyk said. "We're in the phone book." Officials from Acquisitor did not return calls. |
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