After a tough week marked by a
last-second warning, a subsequent
postponed earnings call,
woefully short results and analysts' complaints about its credibility, software maker
ended Friday 57% lower than at Monday's close.
It was a rough week in court, too, for Las Vegas-based PurchasePro. On Wednesday, it lost its motion to have a
lawsuit dismissed that alleges CEO Charles "Junior" Johnson stole the business plan for PurchasePro from a company called
All Creative Technologies
, where Johnson allegedly worked.
When that suit became public in February, PurchasePro issued a press release saying it was baseless. The company implied the suit was brought by Russell Pike, a convicted money-launderer who had served as ACT's president.
Now, though, the other side has been heard from.
"Russell Pike did not bring this suit. The plaintiff in this case is All Creative Technologies, a Nevada corporation of over eighty shareholders," ACT's recent filing in the case states. "While it is true that Russell Pike is now in prison, ACT and its shareholders were not Pike's confederates, but his victims."
The filing says it was an ACT board member who helped put Pike in prison, and that ACT is now pursuing Johnson in a similar fashion. The filing characterizes Johnson and Pike as "gambling buddies."
"Based on my knowledge, that's not true," says Scott Wiegand, PurchasePro's corporate attorney. He says that PurchasePro pointed to Pike as the perpetrator of the lawsuit because public records listed Pike as ACT's sole corporate officer. "The Secretary of the State of Nevada indicated Russell Pike all over the place."
Beyond that, Wiegand had no comment. Since the suit surfaced, PurchasePro has refused to detail Pike and Johnson's relationship. Now that a judge has ruled that the suit can go forward, it's not likely to help PurchasePro's credibility issues.