DALLAS (CN) – The vice president of a private equity firm sued his former employer for $1.5 million, claiming it fired him just before his stake in the firm was to increase, to “chisel” him out of money and equity.
Keith Camp sued Lone Star Investment Advisors in Dallas County Court. He claims they signed a participation agreement in 2008 that gave him an equity stake in LS New Markets Management LLC, Lone Star Investment Advisors LP and LSCRA LLC.
“Plaintiff became employed by defendant as vice president in June 2004,” the complaint states. “Plaintiff was critical in implementing defendant’s successful investment strategies as well as significant, if not paramount, responsibility for attracting investors to defendant’s associated funds and entities.”
Camp claims he was fired without cause on Nov. 4, 2011 – weeks before his stake in the general partners’ carried interest in LS Management and LSCRA would have increased from 12.9 percent to 16.1 percent of 22.5 percent.
“This purported termination represents nothing more than a transparent and shameless money-grab by Arthur Hollingsworth, the principal of defendant, to increase his payout, and dilute plaintiff’s payout,” the complaint states. “Especially in light of his termination without cause, defendant’s attempt to chisel plaintiff out of compensation and equity he is owed is not only unethical but in breach of defendant’s fiduciary duties to plaintiff.”
Based in Dallas, Lone Star invests in leveraged acquisitions and recapitalizations of middle-market businesses with growth potential in manufacturing, industrial, distribution, business services, energy and utilities, according to its website.
Camp seeks and accounting and actual and punitive damages for fraud, fraudulent inducement, breach of contract, negligent misrepresentation and breach of fiduciary duty. He is represented by R. Rogge Dunn with Clouse Dunn of Dallas.