DETROIT, MI – Documents filed on April 6 in Wayne County Circuit Court revealed that in February an arbitrator awarded Greek-American businessman Peter Karmanos, Jr. $16.5 million. It was the first round of a legal battle with Compuware, the company he co-founded, which is based in Detroit.
Karmanos was fired by Compuware “after using colorful expletives to criticize management in a media interview,” according to the Detroit Free Press.
The arbitration award was calculated from value of stock options the company cancelled in 2013, in addition to triple damages and attorney’s fees. Compuware wants the settlement reduced to $4.1 million.
“After being praised in Cobo Center as the Edward H. McNamara Goodfellow of the Year, Karmanos responded to a Free Press reporter’s question after the ceremony by using obscenity-laced remarks to criticize the company’s board members and its management at the time. The reporter had asked for Karmanos’ thoughts about the company’s move to cost-cut as it shaped itself up for a potential sale to a hedge fund or some other buyer. Those cost savings included canceling two long-planned parties organized by Karmanos’ wife to celebrate his legacy,” the Free Press reported.