CEO DATELINE - Products group ends lawsuit, hits reset button
CEO DATELINE - Products group ends lawsuit, hits reset button
- January 5, 2017 |
- LORI SHARN BRYANT
Consider joining CEO Update. Membership gives full access to the latest intelligence on association management, career advancement, compensation trends and networking events, as well as hundreds of listings for senior-level association jobs.
A tumultuous year at the Natural Products Association is ending with the resolution of a lawsuit that pitted the association against some of its own board members. NPA members will soon vote on new bylaws and, if those are adopted, elect a new board.
"In some ways this has gotten us to a better place," said CEO Daniel Fabricant. "It's an odd way to get to a really good reset button, but that's largely the feeling."
NPA filed a lawsuit against 10 current and former board members on Feb. 4, 2016, alleging that they were trying to undermine the association and oust the CEO. The suit sought the dismissal of six current board members and compensation for harm to NPA.
NPA and seven defendants agreed Dec. 23 to a voluntary dismissal of the case "with prejudice," meaning that a case cannot be filed again over the same claims. NPA previously dismissed claims against the other three defendants. The parties will each bear their own costs and attorneys' fees. Settlement terms are confidential.
Fabricant said NPA's board recently voted, 14-2, to change the group's governance structure. The bylaws, which had not been amended since the 1960s, would be reduced from 26 to 13 pages. The size of the board, currently 22 members, would also be reduced by about half.
Still pending: A lawsuit filed in late 2015 by a former NPA employee against Fabricant and the association. Former CFO Brent Weickert alleged that he was terminated for exposing misconduct by the CEO. NPA countered that Weickert was properly terminated for budgetary and other reasons, including communicating information to certain board members beyond his authority to do so.
The association is experiencing steady membership growth, according to NPA; 59 new members were announced in August and another 18 new members in December.
MORE CEO DATELINE