ASX-listed contractor DRA Global has been hit with a $9 million lawsuit from former chief executive officer Andrew Naude over alleged breaches of his employment contract.
ASX-listed contractor DRA Global has been hit with a $9 million lawsuit from former chief executive officer Andrew Naude over alleged breaches of his employment contract.
DRA issued a statement saying it had been notified that lawyers for Mr Naude, the company’s former chief executive, had commenced legal action in the Australian Federal Court.
According to DRA, the application has been filed against the company, its directors some members of management and other respondents.
The timing of the lawsuit comes nearly 12 months after Mr Naude resigned from DRA, having spent nine years as the company’s chief executive.
Ten days after Mr Naude's resignation was announced to the ASX, DRA executive general manager corporate affairs Haydn von Maltitz filed a notice with the takeovers panel, claiming a group of senior managers at DRA had hatched a plan to oust Mr Naude and director Peter Mansell.
The panel upheld the appeal and made a declaration of unacceptable circumstances in May, ordering senior managers to cover the costs of the takeover application, among other orders.
In its statement today, DRA said the claim lodged with the Federal Court quantified loss of income, termination benefits, expense reimbursement, bonuses and leave as in excess of $9 million.
“Amongst other claims in respect of contraventions of the Fair Work Act, Australian Consumer Law and the Corporations Act, includes a claim for breaches of Mr Naude’s contract of employment causing a loss of present and future income under that contract,” DRA’s statement read.
“DRA is taking legal advice in relation to defending the claims, and will inform the market as required without prejudicing its legal position.”
DRA Global shares last changed hands at $2.00.
