In what is a pure act of Chutzpa, former Comverse Technology CEO (CMVT) Kobi Alexander is suing his former company for $72 million for unpaid severance and other un-fulfilled contractual obligations. The suit claims that the company
has also refused to honor its other contractual obligations to Alexander, including, but not limited to his right to severance pay, indemnification and advancement of his legal fees, bonuses and fringe benefits.
So Mr. Alexander, shareholders are supposed to support your lifestyle in Namibia, as you do whatever possible to pay off local authorities to help delay your extradition back to the U.S. Alexander was charged by U.S. authorities in the option back-dating scandal, and proceeded to skip the country and hide out in Namibia.
He has maintained his innocence, blaming poor advice from his financial and legal advisers. Of course for the cynics among us, why run away to Namibia if you are in the clear? If you have a good defense, why not use it. Why become a fugitive?
If for some reason he actually were to win this case, he will have succeeded in milking Comverse shareholders once again. This better not happen.
Disclosure: The author’s has a position in CMVT.PK, and is long the stock as of January 28, 2008.