California · New York · Datacenter Dynamics
Former employees sue Prime Data Centers for $400m, claim compensation fraud
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Seven former Prime Data Centers employees have filed companion lawsuits against the company and its senior executives, alleging a fraudulent scheme to cut them out of equity.
Key facts
- Original story continues: The lawsuits were filed in Texas, California, and New York, against Prime, subsidiary Data Realty Holdings Corp., and CEO Nicholas Laag and CFO Ulrich Pelz
- Also representing the plaintiffs are Doug Lipsky and Lipsky Lowe LLP
- Among the plaintiffs are vice president of human resources Natalie Funcheon, former chief commercial officer Chris Sumter, and former head of utilities and incentives Jeremiah Collins
- These matters have no impact on Prime Data Centers' operations, its commitments to customers and partners, or its ongoing business activities
Summary
The allegations have not been independently verified, and have yet to face scrutiny in a court of law. The team also are considering all available legal options and intend to assert counterclaims against at least several of the individuals bringing the lawsuits to protect their interests and those of their stakeholders. "These matters have no impact on Prime Data Centers' operations, its commitments to customers and partners, or its ongoing business activities.” Original story continues: The lawsuits were filed in Texas, California, and New York, against Prime, subsidiary Data Realty Holdings Corp., and CEO Nicholas Laag and CFO Ulrich Pelz.