Posts tagged: Tony Dombrowik
Spokane-based Ambassadors Group will pay a group of investors roughly $7.5 million to settle a class-action suit claiming the company engaged in securities fraud.
The suit was originally filed in 2009 in Spokane’s federal district court, with a New Jersey electrical workers pension fund as the lead plaintiff. A year later the suit was amended, with the national Plumbers Union Local No. 12 pension fund becoming the lead plaintiff in a class action suit.
After going through federal mediation, the parties signed the settlement last week, said Ambassadors Group CEO and President Jeff Thomas.
The suit alleged that some Ambassadors executives intentionally misled investors about the company’s weak finances during 2007, when the stock price fell by 40 percent. Company executives also sold stock worth more than $7 million during that period, the suit alleged.
In announcing the settlement Ambassadors made no admission of wrongdoing.
The money for the settlement will be paid by Ambassador Group’s insurance companies, said Tony Dombrowik, the company’s CFO.