KV Pharmaceutical Sues Former CEO Over $37 Million in Benefits
10/17/2011 8:18:25 AM
KV Pharmaceutical Co. has filed a lawsuit against its former board chairman and chief executive, Marc Hermelin, hoping to avoid paying him about $36.9 million in retirement benefits, plus legal expenses. The lawsuit, filed Oct. 7 in circuit court in St. Louis County, accuses Hermelin of breaching his fiduciary obligations to the Bridgeton-based company through his alleged misconduct in shipping oversize painkillers to pharmacies. The suit asks the court to grant a declaratory judgment that KV Pharmaceutical has no legal duty to pay tens of millions of dollars in retirement and termination fees to Hermelin, nor to reimburse him for his considerable legal expenses associated with his tenure at the drug company.
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