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Litigation Services > Synopsis of Litigation Cases > Class* Vs. Major Manufacturing Company (Northern Illinois-Federal) |
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In a class action, a major mid-west based manufacturer was sued on the basis of unreasonable compensation and management practices. On discovery the expert found that the company had set up a holding company at the top levels of the organization and that all purchasing and other service provisions had to be made through this internal holding company for which top executives as owners received the profits from the purchasing agreements. This was described by the expert as an unreasonable addition to compensation, and an unusual practice for top management to make profits on company purchasing.
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