Seven former Prime Data Centers employees have filed companion lawsuits against the company and its senior executives, alleging a fraudulent scheme to cut them out of equity.. The allegations have not been independently verified, and have yet to face scrutiny in a court of law.. – Prime Data Centers.
Update: A spokesperson for Prime Data Centers told DCD in a statement: “Prime Data Centers believes the claims against the company are without merit, and we intend to vigorously defend against them through the legal process. We also are considering all available legal options and intend to assert counterclaims against at least several of the individuals bringing the lawsuits to protect our interests and those of our stakeholders.. “These matters have no impact on Prime Data Centers’ operations, its commitments to customers and partners, or its ongoing business activities.”.
Original story continues: The lawsuits were filed in Texas, California, and New York, against Prime, subsidiary Data Realty Holdings Corp., and CEO Nicholas Laag and CFO Ulrich Pelz. In total, the group are seeking compensation in excess of $400 million.. Among the plaintiffs are vice president of human resources Natalie Funcheon, former chief commercial officer Chris Sumter, and former head of utilities and incentives Jeremiah Collins.
The lawsuits claim that the plaintiffs were core members of the team that grew Prime some 4,000 percent into a global data center platform currently valued at more than $6 billion.. The plaintiffs claim that Laag and Pelz took an unidentified co-owner’s interest outright and moved a property he co-owned into a larger, investor-backed platform, without the co-owner’s knowledge.
They then allegedly used unfunded paper “commitments” to reduce his ownership substantially, then bought out the rest with money raised against the asset he co-owned.. That alleged transaction is claimed to be behind several employees being cut out of promised equity..
Dallas-based Rogge Dunn of the Rogge Dunn Group, attorney for the Texas plaintiffs, said: “As Prime’s value skyrocketed, instead of honoring its contractual commitments so employees who were instrumental in its growth could benefit financially from their work, company ownership looked for ways to take from them what they earned and were owed.. “Company leadership purposefully targeted key employees, pressuring them to sign new – much less favorable – agreements.”. Also representing the plaintiffs are Doug Lipsky and Lipsky Lowe LLP..
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