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Two stockholders of Chiquita Brands International Inc. filed a lawsuit Wednesday in Cincinnati against the company and its board of directors, claiming the plaintiffs have suffered damages "caused by a pervasive and on-going course of illegal conduct designed to artificially inflate the earnings of Chiquita."
The two stockholders originally filed separate suits in New Jersey, where Chiquita was incorporated, after The Cincinnati Enquirer published a report on May 3 about Chiquita's international business practices.
The cases were refiled in Cincinnati, where Chiquita is headquartered, at the request of Chiquita attorneys, who wanted to consolidate the complaints with three other shareholder suits, according to Robert Harwood, a New York attorney representing William Steiner of New York, one of the plaintiffs.
The other plaintiff was listed as Harbor Finance Partners, Ltd. Steven Mizel of San Diego signed an addendum in support of the suit stating he was a general partner of Crandon Capital Partners, the managing general partner of Harbor Finance Partners.
Joseph Hagin, Chiquita's vice president for corporate affairs, did not return telephone calls Wednesday.
The lawsuit, called a derivative complaint, was filed in the Hamilton County Court of Common Pleas. Named as defendants were Chiquita and all seven members of the board: Carl H. Lindner, chairman and chief executive officer; Keith E. Lindner, vice chairman; Fred J. Runk, director; Jean Head Sisco, director; William W. Verity, director; Oliver W. Waddell, director, and Steven G. Warshaw, director, president and chief operating officer.
"The Director Defendants through both their culpable action and inaction have permitted Chiquita to systematically engage in violations of the laws of the United States and foreign countries in which Chiquita does business," the suit contends.
The suit includes allegations that:
The new suit, plus the other suits, are all being handled locally by attorneys Richard S. Wayne and William K. Flynn of the Cincinnati law firm of Strauss & Troy.
(Copyright 1998)
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