HOUSTON, April 3, 2012 /PRNewswire/ -- Houston-based NCI Building Systems, Inc. (NYSE: NCS) has won a $2.2 million civil court judgment against Kelly R. Ginn, NCI's former executive vice president and current executive at Green Span Profiles. A Houston jury found that Mr. Ginn committed fraud, breached his fiduciary duty, and was unjustly enriched.
The judgment was signed in February by Judge Mike D. Miller of the 11th Civil District Court in Houston following an October 2011 jury verdict in the same court. The total judgment amount is based on the return of all benefits that Mr. Ginn received, plus interest, from NCI under a retirement agreement that jurors found was procured by fraud.
NCI, one of the world's leading manufacturers of metal construction components, filed the lawsuit after Mr. Ginn started a competing business in violation of his retirement agreement. After suit was filed, NCI discovered that Mr. Ginn also took massive amounts of internal company documents without permission and with no intention of using them for the company's benefit. Mr. Ginn is the son of NCI's former Chairman and CEO and worked at the company for 23 years. Mr. Ginn is now president and CEO of Green Span, a joint venture with McElroy Metals.
"We are happy to see NCI vindicated. The jury came back in only five hours after hearing three weeks of complicated testimony," says attorney Rusty Hardin of Houston's Rusty Hardin & Associates LLP, lead counsel for NCI. "The evidence showed what happened here, and the jury made the right decision."During trial, jurors heard evidence that Mr. Ginn copied more than 370,000 company documents, some of which were alleged to have been used in Mr. Ginn's new competing start-up business, Green Span Profiles. Those documents, if stacked, would have reached a height of 123 feet, or 81 percent of the height of the Statue of Liberty, jurors learned.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV