SHREVEPORT –– A CenturyLink shareholder accuses the company's former and current board members of inflating stock prices in a recent lawsuit.
Dennis Palkon filed the complaint on August 1 in the U.S. District Court for Western District of Louisiana, alleging some board members bought and sold artificially inflated stock for their self benefit, instead of protecting the interests of shareholders.
Palkon also claims board members made false statements concerning the company's revenue. Sales team members have also been accused of adding additional lines to customers to gain extra revenue without the permission of customers in a recent lawsuit brought by the Minnesota Attorney General. As a result of the unlawful sales tactics, the company's reputation and stock plummeted, the complaint states.
The board is also accused of failing to disclose accurate financial reporting to the public.
The shareholder also accuses the board members of ethical violations.
Audit committee members, who approved the company's financial statements, auditing and legal compliance, are also named in the suit. Accurate reporting and auditing are part of their duty to the company to protect assets and preserve company property, the complaint states.
Palkon seeks a discharge of profits and benefits of the board members provided by CenturyLink. Palkon also seeks reimbursement for attorney, expert witness and accountant fees.