Kingsdown Sues Former CEO

September 10, 2014  by in Industry, Legal   

Kingsdown Inc. is suing its former CEO, alleging Eric Hinshaw used his position to buy a beach house, increase his salary, pay himself millions of dollars in bonuses, hire his wife and increase his secretary’s salary without the company’s approval.

Hinshaw was Kingsdown’s CEO for 31 years until he retired in 2012. Frank Hood is the mattress manufacturer’s current CEO. Kingsdown is based in Mebane.

In a statement emailed Tuesday night to the Times-News, Hinshaw called the action a “completely unfounded attack” on his character.

“It is my belief that volumes of information, board minutes and other documents will totally refute the claims,” Hinshaw said.

The suit was filed Aug. 29 and names Hinshaw, his wife, Rebecca Hinshaw — also a former Kingsdown employee — and Anne Ray, Hinshaw’s former executive assistant, as defendants. The Hinshaws and Ray have 30 days to file a response.

Kingsdown is represented by Denis E. Jacobson and Alan B. Felts, of Tuggle Duggins P.A. of Greensboro.

“Mr. Hinshaw repeatedly engaged in self-dealing, consistently failed to act in Kingsdown’s best interest, and otherwise abused his position as a fiduciary,” the complaint states. “Mr. Hinshaw’s repeated abuses resulted in substantial benefits for himself, Rebecca Hinshaw and Anne Ray at the expense of Kingsdown.”

Read Entire Story  Source: The Times-News