WVU Foundation answers Greer lawsuit
MORGANTOWN - The WVU Foundation denies many of the allegations made by Greer Industries in a lawsuit and asks a judge to dismiss part of the filing.
On Thursday, March 26, the Foundation answered the lawsuit filed by Greer Industries Inc. in early February.
Part of the lawsuit involves the Foundation's investment in West Virginia Media. In 2007, an audit of the WVU Foundation found that the organization made a $2 million equity investment and $5.75 million in other investments to WV Media. Then, Foundation Vice President of Investment and Chief Information Officer Dorothy Dotson also served from 2002 to 2008 on the advisory board of WV Media.
The suit states that in violation of the Foundation's conflict of interest policy that Dotson received $100,000 in stock from WV Media.
In 2007, the Foundation sold its investment in WV mMdia for $2.7 million thereby losing $5 million in the process.
In its answer, the Foundation admits it invested in the media company. It states that it received roughly $5 million from the sale of its investment and interest payments by the media company. So the amount loss on the investment is far less than alleged.
It denies many of the allegations related to the claims made by Greer in its filing.
The other part of the lawsuit deals with the purchase of various scoreboards. In 2007, WVU hired a firm to look at installing and procurement of scoreboards for the Coliseum. Despite several companies expressing an interest, Ralph and Richard Ballard and Payne worked behind the scene to secure the deal. In the same year, Richard Ballard approached Russell Sharp, an associate athletic director, to discuss Panasonic securing the contract.
Payne and the Ballards continued to work to secure the contract, despite some concern at the university.
In 2008, Richard Ballard stated that Panasonic would be willing to gift the scoreboard to the Foundation, eliminating the need to release a request for proposals to other potential vendors.
As part of the agreement, the university and Foundation accepted the gift, but with the condition it would seek donations and other revenue to purchase a scoreboard for the football venue. In March 2008, an agreement was entered into which the Foundation agreed to pay Panasonic $5 million for the football scoreboard, a contract which was not competitively bid.
The Foundation denies many of the allegations and also notes that no state funds were used to repay the foundation for its part of the scoreboard transaction.
The answer also asks a judge to dismiss part of the suit related to a breach of fiduciary claim. The Foundation argues that Greer does not have the standing to bring the claims.
MORGANTOWN - The WVU Foundation denies many of the allegations made by Greer Industries in a lawsuit and asks a judge to dismiss part of the filing.
On Thursday, March 26, the Foundation answered the lawsuit filed by Greer Industries Inc. in early February.
Part of the lawsuit involves the Foundation's investment in West Virginia Media. In 2007, an audit of the WVU Foundation found that the organization made a $2 million equity investment and $5.75 million in other investments to WV Media. Then, Foundation Vice President of Investment and Chief Information Officer Dorothy Dotson also served from 2002 to 2008 on the advisory board of WV Media.
The suit states that in violation of the Foundation's conflict of interest policy that Dotson received $100,000 in stock from WV Media.
In 2007, the Foundation sold its investment in WV mMdia for $2.7 million thereby losing $5 million in the process.
In its answer, the Foundation admits it invested in the media company. It states that it received roughly $5 million from the sale of its investment and interest payments by the media company. So the amount loss on the investment is far less than alleged.
It denies many of the allegations related to the claims made by Greer in its filing.
The other part of the lawsuit deals with the purchase of various scoreboards. In 2007, WVU hired a firm to look at installing and procurement of scoreboards for the Coliseum. Despite several companies expressing an interest, Ralph and Richard Ballard and Payne worked behind the scene to secure the deal. In the same year, Richard Ballard approached Russell Sharp, an associate athletic director, to discuss Panasonic securing the contract.
Payne and the Ballards continued to work to secure the contract, despite some concern at the university.
In 2008, Richard Ballard stated that Panasonic would be willing to gift the scoreboard to the Foundation, eliminating the need to release a request for proposals to other potential vendors.
As part of the agreement, the university and Foundation accepted the gift, but with the condition it would seek donations and other revenue to purchase a scoreboard for the football venue. In March 2008, an agreement was entered into which the Foundation agreed to pay Panasonic $5 million for the football scoreboard, a contract which was not competitively bid.
The Foundation denies many of the allegations and also notes that no state funds were used to repay the foundation for its part of the scoreboard transaction.
The answer also asks a judge to dismiss part of the suit related to a breach of fiduciary claim. The Foundation argues that Greer does not have the standing to bring the claims.
