Claims and counterclaims that two former leaders of Des Moines-based The Weitz Co. brought against each other have been dismissed, but the company's new owner has been brought into the fray.
Glenn DeStigter, who was chairman and CEO of the construction company from 1983 to 2006, recently dismissed a claim that accused former chairman and CEO Craig Damos, who DeStigter recruited to succeed him in 2006, of violating a contractual agreement not to pursue legal charges after he was fired in June 2010.
At the heart of the case is Damos' allegation in a 2011 lawsuit that The Weitz Co. had not lived up to a separation agreement in which his shares in the company were to be repurchased over a period of years.
DeStigter also was named as a defendant. Judge Lawrence McLellan ruled last week that all claims against DeStigter should be dismissed from the case.
Damos filed the lawsuit after his per share payment dropped from $213.98 in 2010 to $172.98 the following year. In initial filings, Damos said the higher figure should have been locked in at the larger amount. His attorneys have since claimed that the method of valuing the shares was improper.
A recent amendment to the lawsuit claims that valuations for 2010 and 2011 lowered the company's book value by more than $4.8 million.
Though Judge McLellan dismissed the claims against Weitz in a July 2012 ruling, he later determined that the claim that the shares were wrongfully valued and that changes in board governance were approved without a vote by Damos, who retained voting rights as shareholder, could stand.
In addition, the judge allowed Damos to add Orascom Construction Industries as a defendant in the lawsuit. Orascom announced in September 2012 that it was buying Weitz and had received state economic development funds to build a fertilizer plant in southeast Iowa. The purchase closed in December.
Damos alleges that Orascom caused the terms of his contracts with Weitz to be altered.
Click here for a related story in the Business Record