Award Affirmed Court of Special Appeals Upheld a $59,500 Verdict Against Two Former Directors of Network Technologies Group, Inc. |
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NTG Press Coverage Summary
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LAW NOTES |
John M. Collard, the turnaround CEO who found fraud
and liquidated now defunct NTG, said he is pleased with the decision affirming
that Nora Zietz and Robert McE. Stewart were liable for negligent misrepresentation.
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The Court of Special Appeals upheld a $59,500 verdict against Nora Zietz and Robert McE. Stewart, two former directors of Network Technologies Group in favor of the turnaround specialist that liquidated the telecomm construction contractor. John Collard of Strategic Management Partners, Inc. was brought in to save NTG in 2002, but discovered financial irregularities that brought the company down. He sued NTG and its directors for about $300,000. Last summer -- nearly two years after the 2004 trial -- the Anne Arundel County Circuit Court found directors Nora Zietz and Robert McE. Stewart liable for negligently misrepresenting NTG's health when they hired Collard. The Judge also rejected their claim for contribution against two other directors, who settled before trial. CEO Michelle Tobin and two other executives pled guilty to fraud in federal court following NTG's collapse.
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Former NTG employees will get 401(k) money thought lost
(June 19, 2003)
Collard: Contract based on bad info (March 11, 2003) Suit: Auditors share blame for NTG loss (March 7, 2003) NTG's CFO admits guilt in fraud (February 28, 2003) NTG's ex-CEO pleads guilty to fed fraud charge; must cooperate (February 21, 2003) Even turn-around specialist was stunned by books (February 15, 2003) Clues to alleged fraud unfold in hindsight (February 8, 2003) Ex-NTG execs face fed fraud indictments (January 23, 2003) |
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