CEO Judgment Leads To Bigger Losses At Online Resources
CHANTILLY, Va. – Online Resources Corp. said yesterday that a financial settlement with its founder and former CEO helped push it into the red for the first quarter to the tune of $7.2 million, from a loss of $150,000 for the same quarter last year.
The first quarter loss was created by a $7.7 million legal reserve created for the claims by Matthew Lawlor, who was terminated as CEO in December 2009 amid the company’s declining finances. The company reported two weeks ago a state court in Virginia ordered it to pay Lawlor $5.3 million for wrongful termination.
Uncertainty over the litigation charges forced the company to abruptly cancel its first quarter report last week.
The first quarter financials also include a $1 million charge for investment banking services after the company received, then rejected, two unsolicited takeover offers in January.
First quarter revenues were up almost 2% to $39.3 million.