CDW Reaches $4.4M Suit Settlement

Share this content:
Computer products direct marketer CDW Computer Inc., Vernon Hills, IL, will pay a former company shareholder roughly $4.4 million to settle a lawsuit leveled against CDW and chairman/CEO Michael P. Krasny, who is also the company's majority shareholder.


The suit was originally brought against CDW and Krasny by an unnamed former director and executive officer of the company.


The plaintiff initiated the suit against CDW and Krasny in June 1993, seeking actual and punitive damages related to an earlier stock buyout. In July 1990, the company had redeemed the shares of the company then held by the plaintiff. The shares' purchase price totaled about $500,000, based on book value, in accordance with a buyout agreement.


In a prepared statement, CDW said the settlement amount was based on the difference between the fair market value of the company when the plaintiff's interest was redeemed and the $500,000 already paid to the plaintiff. CDW and Krasny asserted that their actions related to the buyout were "honest and proper," and that the allegations were "without merit."


However, the company agreed to dismiss pending litigation with the one-time, additional payment of $4.4 million. Because the money will be paid entirely by Krasny, CDW will suffer no cash flow impact from the settlement, the company said. For the 12 months ended Sept. 30, CDW's revenue totaled $1.6 billion.
Loading links....

Sign up to our newsletters

Company of the Week

We recently were named B2B Magazine's Direct Marketing Agency of the Year, and with good reason: We make real, measureable, positive change happen for our clients. A full-service agency founded in 1974, Bader Rutter expertly helps you get the right message to the right audience at the right time through the right channels. As we engage our clients' audiences along their journey, direct marketing (email, direct mail, phone, SMS) and behavioral marketing (SEM, retargeting, contextual) channels deliver information relevant to the needs of each stage. We are experts at implementing and leveraging marketing technologies such as CRM and marketing automation in order to synchronize sales and marketing communications. Our team of architects and activators plan, execute, measure and adjust in real time to ensure the strategy is working as needed and change things if it's not.

Find out more here »

DMN's Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here