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A former executive at CornerStone Staffing Solutions Inc. responded to a RICO lawsuit by the company saying the issue was largely a dispute about money among family members and that it could have been settled as a family matter. The executive, Larry James, called the situation “distasteful and disappointing.”
Pleasanton, Calif.-based CornerStone filed a lawsuit in federal court citing the Racketeer Influenced and Corrupt Organizations (RICO) Act again James and others. The suit claims breach of fiduciary duty, fraud, misappropriation of trade secrets, intentional interference with contractual relations and other allegations. For the original story, click here.
James is the nephew of CornerStone’s owner, Mary Anderson.
In his statement, James said:
“As the managing director and chief architect of CornerStone Staffing Solutions Inc. throughout these last nine years, I continue to take pride in growing a profitable company from inception to over $100 million in revenue. The journey, accompanied by the wonderful employees I worked along side to make CornerStone the success it is today, remains a great source of pride for myself and many others.
“It is for this reason, accompanied by the fact that this is largely a dispute about money among family members, that makes this situation all the more distasteful and disappointing.
“To briefly set the record straight, I announced my resignation on Dec. 31, 2011, to be effective on March 31, 2012. This was prompted by many factors, including a failure to provide both my percentage of company profits as well as a never fulfilled agreement to provide me substantial equity. This was memorialized through countless emails and face to face discussions with both Mary Anderson and several of her professional representatives, including her personal attorney and accountant.
“Though I intend to defend my good name and reputation throughout this unfortunate exercise, I remain confident that this dispute could simply have remained a private family matter to be resolved and not the theatrical circus it has become.
“My thoughts and prayers go out to all the employees of CornerStone and I trust that they, along with their clients, will reserve judgment until all the facts in this case come to light.”