Lawsuits Trade Accusations in Dow Firings
Posted May 9, 2007 9:31 AM CDT
By Debra Cassens Weiss
Two officials fired by Dow Chemical sued the company yesterday, claiming they were defamed by claims they were improperly involved in third-party discussions about a company takeover.
Dow has in turn sued the men, executive vice president Romeo Kreinberg and senior adviser J. Pedro Reinhard, for alleged breach of fiduciary duties, according to the Wall Street Journal. Reinhard remains as a board member.
The lawsuits reveal the source of the allegations about unauthorized talks as James Dimon, the chief executive of JPMorgan Chase, according to the WSJ and the New York Times.
The fired company veterans contend the talks were routine and the allegations were a pretext to fire them for disagreeing with CEO Andrew Liveris. A Dow spokesman denies the allegations.