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Ex-HHGregg manager's lawsuit grows into class-action

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A lawsuit brought by a former HHGregg Inc. manager charging that the company failed to pay incentive bonuses has been granted class-action status by a Marion Superior Court judge.

Former accounting manager Dwain Underwood filed his complaint in March 2013, claiming that the Indianapolis-based appliance, electronics and furniture retailer failed to factor a $40 million payout into the calculation used to determine whether employees were entitled to incentive bonuses.

The company collected the payout after Executive Chairman Jerry Throgmartin died in 2012.

Underwood claims HHGregg should have paid him a $25,000 bonus based on the company’s fiscal 2012 earnings before interest, taxes, depreciation and amortization, or EBITDA, of $144.4 million.

Underwood claims HHGregg wrongly based bonuses on “adjusted EBITDA,” which excluded the life insurance payout. The payout sent HHGregg's profit soaring in the fiscal fourth quarter of 2012.

The complaint involves 62 current and former HHGregg employees, according to Judge Robert R. Altice Jr.’s July 9 ruling awarding Underwood’s suit class-action status.

Underwood’s attorney, Eric Pavlack, said the amount of unpaid bonuses totals about $5 million.

“We’re very pleased with the decision,” he said. “We weren’t surprised because we think it’s the right decision. We were hopeful that this is what would happen.”

A spokeswoman for HHGregg said the company doesn’t comment on pending litigation.

In rendering his decision, the judge disagreed with HHGregg’s argument that class-action status should not be granted because some members don’t want to belong to the suit.

“If such class members do not wish to participate in this case,” Altice wrote, “they will have the opportunity to opt out after receiving notice.”

Underwood voluntarily left the company in January 2013, two months before he filed suit.

He is suing the company for breach of contract and unjust enrichment.

 
 

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  1. What is the one thing the Hoosier legal status quo hates more than a whistleblower? A lawyer whistleblower taking on the system man to man. That must never be rewarded, must always, always, always be punished, lest the whole rotten tree be felled.

  2. I want to post this to keep this tread alive and hope more of David's former clients might come forward. In my case, this coward of a man represented me from June 2014 for a couple of months before I fired him. I knew something was wrong when he blatantly lied about what he had advised me in my contentious and unfortunate divorce trial. His impact on the proceedings cast a very long shadow and continues to impact me after a lengthy 19 month divorce. I would join a class action suit.

  3. The dispute in LB Indiana regarding lake front property rights is typical of most beach communities along our Great Lakes. Simply put, communication to non owners when visiting the lakefront would be beneficial. The Great Lakes are designated navigational waters (including shorelines). The high-water mark signifies the area one is able to navigate. This means you can walk, run, skip, etc. along the shores. You can't however loiter, camp, sunbath in front of someones property. Informational signs may be helpful to owners and visitors. Our Great Lakes are a treasure that should be enjoyed by all. PS We should all be concerned that the Long Beach, Indiana community is on septic systems.

  4. Dear Fan, let me help you correct the title to your post. "ACLU is [Left] most of the time" will render it accurate. Just google it if you doubt that I am, err, "right" about this: "By the mid-1930s, Roger Nash Baldwin had carved out a well-established reputation as America’s foremost civil libertarian. He was, at the same time, one of the nation’s leading figures in left-of-center circles. Founder and long time director of the American Civil Liberties Union, Baldwin was a firm Popular Fronter who believed that forces on the left side of the political spectrum should unite to ward off the threat posed by right-wing aggressors and to advance progressive causes. Baldwin’s expansive civil liberties perspective, coupled with his determined belief in the need for sweeping socioeconomic change, sometimes resulted in contradictory and controversial pronouncements. That made him something of a lightning rod for those who painted the ACLU with a red brush." http://www.harvardsquarelibrary.org/biographies/roger-baldwin-2/ "[George Soros underwrites the ACLU' which It supports open borders, has rushed to the defense of suspected terrorists and their abettors, and appointed former New Left terrorist Bernardine Dohrn to its Advisory Board." http://www.discoverthenetworks.org/viewSubCategory.asp?id=1237 "The creation of non-profit law firms ushered in an era of progressive public interest firms modeled after already established like the National Association for the Advancement of Colored People ("NAACP") and the American Civil Liberties Union ("ACLU") to advance progressive causes from the environmental protection to consumer advocacy." https://en.wikipedia.org/wiki/Cause_lawyering

  5. Mr. Foltz: Your comment that the ACLU is "one of the most wicked and evil organizations in existence today" clearly shows you have no real understanding of what the ACLU does for Americans. The fact that the state is paying out so much in legal fees to the ACLU is clear evidence the ACLU is doing something right, defending all of us from laws that are unconstitutional. The ACLU is the single largest advocacy group for the US Constitution. Every single citizen of the United States owes some level of debt to the ACLU for defending our rights.

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