The suit alleges that the company's ESOP, or employee stock ownership, lost nearly $37 million with a net loss of almost $4 million, according to the “Forbes” article.
Former Northland Hearing Center COO Jeffrey Longtain has pleaded guilty to tax evasion and will forfeit $2.3 million of Northland stock and pay $697,327 in restitution to Starkey. He reportedly faces a maximum of 3 years in jail and up to $100,000 in fines, but is expected to receive leniency for his cooperation with the government and his agreement to testify against other former Starkey executives.
Allegations in a lawsuit filed against Starkey Hearing Technologies suggest the surprise firings in September, which included Starkey President Jerry Ruzicka and Operations VP Keith Guggenberger, were the result of an inter-office power struggle that created a schism inside the company. Guggenberger has filed a $10.9 million wrongful breach of contract complaint against the company.
