Judge Unseals Suit Against Vision Technologies
Last updated Thursday, July 17, 2008 8:31 PM CDT in News
By Robin Mero
The Morning News
A judge on Wednesday unsealed a court file that she closed in October to protect trade secrets of Rogers-based Vision Technologies Inc., which was recently awarded a military contract to produce 400 rugged high-tech infrared cameras for Lockheed Martin.
The breach of duty and negligence lawsuit was filed Oct. 5 by company shareholders to oust president and board chairman Lee Thompson Sr. and his son, vice president Lee Thompson Jr. The suit alleges the senior Thompson misappropriated funds, overstated stock prices and created a hostile work environment. It asks the court to order a full financial accounting of the company, which has suffered recurring losses, and seeks unspecified damages.
The suit was filed by shareholders Laura Duke Revocable Trust, Michael McCracken, Robert Thornton, Bill Schwyhart, Richard Dunleavy, Michael Dunleavy, James Phillips, Rusty Hames, Terry Johnson, Jim Neill, the Jeannie Fleeman Revocable Trust, Billie Jean Reeves, Bart Wayne Fleeman and John Todd Fleeman. Other plaintiffs listed in the original lawsuit are no longer part the suit, according to documents.
Defendants are the Thompsons and Vision Technologies Inc.
Benton County Circuit Judge Xollie Duncan agreed this week to open the file to the public inspection after allowing parties to redact some information. Max Brantley of the Arkansas Times filed a motion to intervene and oppose sealing of the case. The judge's motion doesn't address that motion but says that attorneys requested a modified order.
The day the suit was filed, Circuit Judge John Scott signed a temporary restraining order agreeing shareholders could suffer irreparable harm without removal of the Thompsons. The father and son were escorted from the company headquarters by Rogers Police at 3 p.m. Oct. 5, according to court documents.
Plaintiffs Bill Schwyhart and James Phillips were appointed to temporarily conduct business and management of the company.
The Thompsons were back in court Oct. 8 with attorney David Matthews arguing before Duncan that Scott wasn't given enough facts, and that the court system was being used to "hijack" the company. Duncan returned the Thompsons to management and sealed the case to protect sensitive material. She dissolved the restraining order and ordered Schwyhart and Phillips to return any items taken from the premises. She also prohibited parties from discussing information accessed during that weekend.
All attorneys and parties are prohibited from discussing the case.
Duncan asked a reporter from The Morning News to leave the courtroom June 30 as the judge conducted a hearing to consider motions in the case.
A complete audit of the company finances is under way by Beall Barclay and Co. Inc., as the judge ordered in May, court records show.
Defendants are asking that plaintiffs provide their fingerprints to determine who mailed an unauthorized FedEx package in December to Science Applications International, a Fortune 500 company with which Vision Technologies does business, according to documents.
Defendants allege in a contempt motion that plaintiffs, or someone acting on their behalf, mailed copies of the lawsuit and other proprietary information to Science Applications.
That mailing was turned over to Lee Thompson Sr., who showed it to Rogers Police officers then forwarded it to a fingerprint examiner.
The file includes affidavits from board members that state that Jeannie Fleeman submitted a letter Sept. 21 to the board demanding Lee Thompson Sr. resign.
The board is comprised of Lee Thompson Sr., Bjorn Koritz, James Burnett, Harvey Weiss, Jeannie Fleeman and Collins Haynes.
An audit of the company's 2006 financial statements showed recurring net losses, raising doubts about long-term fiscal health, but no unusual transactions or policies were noted and the auditor didn't object to any accounting decisions made by management, according to the affidavits.
In a Sept. 26 meeting, the board said it couldn't conclude whether Fleeman's allegations were accurate or had merit, so no action was taken, the affidavits state. Other board members didn't share Fleeman's displeasure with Lee Thompson Sr., according to Koritz's affidavit.
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