ADVERTISEMENT
Advertise Here

Office Hours

Posts tagged: Tony Dombrowik

Ambassadors settles securities fraud suit for $7.5 million, denies wrongdoing

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.

Get blog updates by email

About this blog

The Spokesman-Review business team follows economic development in Spokane and the Inland Northwest.

Sign up for our business email newsletter
Latest comments »

Read all the posts from recent conversations on Office Hours.

Contributors

Alison Boggs (@alisonboggs) Online Producer Alison Boggs posts and manages content on spokesman.com and its social networking accounts.

Recent work by Alison

Scott Maben Scott Maben is a Deputy City Editor who covers North Idaho news and higher education.

Addy Hatch is the city editor, and formerly was business editor.

Search this blog
Subscribe to this blog
ADVERTISEMENT
Advertise Here