In California and beyond, getting a good night’s sleep is important. However, some former executives of Mattress Firm may not be sleeping very well lately. The company has filed a lawsuit against two men now under investigation for numerous claims of misconduct that left Mattress Firm floundering to remain solvent. The complex civil litigation involves lawsuits and countersuits as the parties point fingers at each other.
Mattress Firm claims its former executives accepted bribes from a real estate broker they convinced the company to hire. The company alleges that the broker owned numerous commercial properties that he arranged for Mattress Firm to lease at substantially more than the standard rate. The broker in cooperation with the executives apparently accepted watches, trips and cash in exchange for signing long leases with high rent for the broker’s properties.
The executives deny the claims and place much of the blame for the company’s decline on the CEO, saying he approved of all the deals. In a countersuit, the executives claim the CEO sought to crush the firm’s competitors by saturating the market, sometimes having a Mattress Firm on several corners of a single intersection. The suit also claims the company encouraged executives to accept gifts. However, a recent drop of 62 percent in Mattress Firm’s market value has prompted investigations into the ethical management of the company’s finances.
When California businesses are involved in complex civil litigation, they may be facing numerous legal issues. Personal and corporate welfare may be at stake. Having the guidance of an experienced and aggressive attorney may make the difference in the outcome of the case.