DALLAS Pizza Inn has sued Akin Gump Strauss Hauer and Feld, charging that the nationally prominent law firm helped enrich some executives at the company’s expense.
Pizza Inn says the law firm breached its duty to the company by setting up generous severance packages for several executives, including former general counsel B- Keith Clark.
The company also charges that Akin Gump and one of its partners, J- Kenneth Menges Junior, helped the executives by changing Pizza Inn’s bylaws to make it harder for shareholders to take part in running the corporation or elect new directors to the board.
The lawsuit was filed in state district court in Dallas and reported by Texas Lawyer. The company is seeking unspecified actual and punitive damages.
A spokeswoman for Akin Gump says the firm and Menges would decline to comment. A lawyer for Clark, the former Pizza Inn general counsel, says he understood that Akin Gump didn’t draft the employment agreements at the heart of the lawsuit.
The newspaper reports that Pizza Inn fired Akin Gump as outside counsel in May.